By Aurelia Mbokazi
The year began with a sharp focus on the motoring industry’s future at Toyota South Africa’s eighth annual State of the Motor Industry (SOMI) event, held on 23 January at Kyalami Race Track.
Industry leaders and professionals gathered to hear Toyota South Africa Motors (TSAM) President and CEO Andrew Kirby deliver a mixed review of South Africa’s motor industry landscape, coinciding with the country celebrating 300 days without load shedding.
Challenges and Opportunities
Kirby painted a sobering picture of the challenges faced by the local motor industry, with sales growth a critical focus. He emphasised the need for South Africa to surpass the 600 000 annual vehicle sales threshold to attract foreign direct investment and maintain global competitiveness. Additionally, he called for more robust government support to address pressing concerns, including transport logistics and emissions regulations.
The Five Key Trends Shaping the Industry
Kirby also shared five pivotal trends that are shaping the industry beyond 2024 :
1. Affordability Remains Key
Affordability continues to dominate buying decisions. Many potential buyers face
credit rejections, leading to increased demand in the used car market.
2. SUVs Dominate the Market
SUVs are on an unstoppable rise. In 2018, there were 114 SUV/crossover model
ranges. By 2024, this number has grown to 166, with SUVs now accounting for
over 50% of passenger car sales.
3.The Shift to In-Car Technology
Buyers are prioritising the driving experience, focusing less on traditional
performance metrics like 0-100 km/h acceleration and more on connectivity,
infotainment, and customisable features.
4. The Rise of Indian and Chinese Vehicles
Global supply chains are increasingly dominated by India and China. India’s
exports have grown by 20%, and Chinese electric vehicle (EV) and plug-in hybrid
sales lead the global market. This shift has resulted in a 6.5% decline in South
African car production and a 79% increase in vehicles sourced from India.
5. Transition to New Energy Vehicles (NEVs)
With 70% of South Africa’s automotive exports destined for Europe and the UK,
stricter fuel emissions regulations in these markets pose challenges for local
manufacturers. However, Kirby highlighted government initiatives like tax
incentives for battery-electric vehicles as steps in the right direction.
A Glimpse at the Future
Following Kirby’s insightful address, TSAM’s Senior Vice President for Sales and
Marketing, Leon Theron, took to the stage to showcase Toyota’s upcoming models. The presentation captivated the audience, reinforcing the brand’s commitment to innovation and meeting evolving customer expectations.
