At Toyota’s annual State of the Motor Industry event (SOMI), Andrew Kirby, TSAM’s president and CEO, delivered a keynote address about the challenges and opportunities facing the South African motor industry.
Key industry trends and challenges
· Market growth: Kirby emphasised the need to exceed 600 000 annual sales to attract foreign direct investment and secure the future of local automotive production.
· Government support: While acknowledging the government’s efforts regarding battery electric vehicle (BEV) incentives, Kirby stressed the need for further support to maintain South Africa’s automotive production base.
· De-industrialisation and local content: Kirby highlighted the trend of declining local content in locally produced vehicles, currently below 40%.
· Economic outlook: While acknowledging challenges, NAAMSA CEO Mikel Mabasa suggested a positive outlook, predicting a ‘year of abundance’ due to political stability.
· Sales forecast: Kirby projected a 2025 sales forecast of 535 000 units, reflecting a 3.7% increase, while hinting at a more optimistic outlook.
Emerging automotive trends
Kirby identified five key trends shaping the automotive sector:
1. Buying down: Consumers opt for more affordable vehicles, migrating from C and D segments to the B segment.
2. SUV dominance: SUVs now account for over 50% of passenger car sales, with the number of SUV models increasing significantly.
3. In-car technology: Customers demand an immersive in-car experience, including advanced connectivity, personalisation, and voice/gesture control.
4. Shifting production hubs: India and China are becoming major automotive production hubs, impacting global vehicle sourcing.
5. NEV transition: Globally, EV adoption is rising, and in South Africa, hybrid sales are increasing rapidly. Experts predict mass BEV adoption by 2029 with incentivisation, or 2032 without.
New model unveiling
Leon Theron and Rory Reid presented several new Toyota and Lexus models:
· Corolla Cross upgrade: Features a refreshed design, enhanced equipment, and improved safety features.
· Fortuner GR-S: Boasts a dramatic look and increased power.
· GR Yaris upgrade: Showcases aesthetic refinements and a power increase.
· Hilux Legend 55: Features a wide body/wide tread design and performance enhancements.
· Lexus LX upgrade & 700h Hybrid: Introduces a hybrid variant to the LX line-up.
· Lexus GX: A new rugged yet sophisticated on/off-roader, including an Overtrail variant.
Dakar Rally and Gazoo Racing
The SOMI event also celebrated Toyota Gazoo Racing’s success in the Dakar Rally, with Henk Lategan and Brett Cummings receiving recognition for their second-place finish. Giniel de Villiers announced his retirement from Dakar, expressing his intention to remain involved in motorsport. The next GR Cup car was revealed to be the GR Yaris.
Conclusion
The SOMI event provided valuable insights into the South African automotive industry and showcased Toyota’s commitment to innovation and meeting evolving consumer demands.
Source: MotorPress
