Toyota South Africa Motors (TSAM) held their annual State Of the Motoring Industry (SOMI) at a time when the local market is experiencing disruption with new entrants coming in at almost every month intervals. Despite the aggressive competition never experienced in the market before, Toyota Mzansi welcomed the competition and is eager to keep its market leadership. This year’s SOMI brought together industry leaders, policymakers, media, and mobility partners under the theme “Driving Through Disruption.” The event explored global volatility, industrial competitiveness, and the acceleration of South Africa’s transition to New Energy Vehicles.
The Mzansi auto market has steadily shown growth since the Covid pandemic days and for the first time recorded sales similar to those seen pre covid. With 597k recorded sales volumes, 2025 sales are a 15.7% growth year on year from 2024. TSAM President Mr Andrew Kirby was happy the industry is growing but was concerned that of the 597k sales numbers, only 33% of that is locally produced with the balance imported. When you consider 2006 where 703k cars were sold with 56% of those being locally produced, you then get the warning signs especially in a country with slow economic growth and a high unemployment rate. 2025 Local production peaked at 609k with 68% being exported but the domestic market sales of these locally produced cars continues to decline. Africa overall is showing signs of good growth and with Mzansi being the industrial hub, Government is playing a more active role in engaging with local producers to take advantage of this opportunity.
Since 2006, exports to Europe have doubled whilst other regions have halved, highlighting Mzansi's reliance on Europe. This is in danger though as the UK and EU have ICE (Internal Combustion Engine) bans looming and with local production dominated by ICE cars, changes towards production of NEV (New Energy Vehicles) needs to be fast tracked. This also means the local market needs to have enough demand to sustain local production of NEVs which at 16 716 (2025) still has a long way to go. On the positive side though, of that 16 716, Toyota accounts for 58% NEV sales. Key aspects that can shift the NEV local market to grow, is the change of political approach to NEVs including investment in infrastructure, revised taxation policies and more government incentives (production and sales). It is with this in mind that TSAM is investing in NEV products for the local market with Lexus the dominant premium brand within the stable.
A pioneer of hybrid technology, both globally and in South Africa, TSAM showcased an expanded New Energy Vehicle line‑up, including:
- Toyota bZ4X BEV – Toyota’s first Battery Electric Vehicle in South Africa
- Toyota RAV4 HEV and PHEV
- Corolla Cross GR-‑S HEV
- Land Cruiser 300 1M-‑HEV
- Lexus RZ BEV
- Lexus RZ 600e BEV
In support of its NEV roadmap, TSAM participates in a range of energy diversification and mobility projects aligned to three core pillars:
- Electric Vehicle Eco-system
- Carbon Neutral‑Neutral Fuels
- Circular Economy
Global Brand Strategy and Local Alignment
Building on the Toyota Five Brand global strategy announced at the 2025 Japan Mobility Show, Leon Theron, Senior Vice President of Sales and Marketing reaffirmed that the Toyota brand remains at the centre of the strategy, supported globally by Century (which will for the first time be a stand-alone brand) and value-focused Daihatsu. Locally, the focus will continue to be on the three core brands: Toyota, Lexus, and Gazoo Racing (GR) - each playing a distinct role in the creation of ever better cars. Gazoo Racing in turn will now also stand as a separate brand entity, reaffirming Toyota’s ‑better cars. Century and Daihatsu will play a more active role in local TSAM sales starting in 2027.
“Our ability to adapt has kept us relevant. The challenges we have faced have strengthened our competitiveness - and will continue to do so in the years ahead,” said Theron.
Reflecting on Toyota’s 2025 results (148 124 new vehicles sold, securing a 24.8% market share), Theron highlighted how the company navigated an increasingly competitive and dynamic market. Key contributors to Toyota’s sustained resilience included the introduction of Indian-sourced vehicles, expanded product offerings, more accessible entry points in the passenger segment and a steadfast commitment to the sourced vehicles, expanded product offerings, more accessible entry points in the passenger segment and a steadfast commitment to the multi‑sourced vehicles, expanded product offerings, more accessible entry points in the passenger segment and a steadfast commitment to the multipathway‑pathway strategy.
Lexus also marked a milestone with its highest ever share in the premium market, fuelled by record New Energy Vehicle (NEV) sales. Achieving 3.5% premium market share, Lexus surpassed its previous‑ever share in the premium market, fuelled by record New Energy Vehicle (NEV) sales. Achieving 3.5% premium market share, Lexus surpassed its previous record from 2007. The GX model accounted for 347 units of the 1113 total, underscoring Toyota’s commitment to innovation and sustainability.
Gazoo Racing: Driving Performance Forward
Theron announced a new collaboration between Gazoo Racing and SVR, a certified factory for Toyota approved‑approved vehicle modifications. The project is currently in development, with details to be revealed soon.
“Gazoo Racing continues to elevate Toyota’s performance credentials globally. The establishment of a local GR modification facility is a significant milestone, bringing world‑class engineering and customisation to South African motorsport,” said Theron.
Ahead of the upcoming GR Cup Media Challenge, Theron also announced participating media representatives: Craig Nicholson (News24 Motoring), Tayedza Mbiri (AutoTrader), Nabil Abdool (SuperSport), Naresh Maharaj (The Witness / Algoa FM), Kumbi Mtshakazi (KumbiM On Cars), Brandon Jacobs (Khulekani on Wheels) and Justin Ford (eNCA). The GR Cup drivers will take to the track in a 7-race series across South Africa, behind the wheel of the just-launched‑M On Cars), Brandon Jacobs (Khulekani on Wheels) and Justin Ford (eNCA).
Additionally, TSAM confirmed the launch of GR Parts, a performance-focused‑focused accessory range to be offered through dealerships with dedicated GR Zones.