STATE OF THE MOTOR INDUSTRY
In what’s become South Africa’s premier press event at the start of each year, Toyota South Africa Motors (TSAM), hosted the annual State of the Motor Industry (SOMI) at Kyalami, in Johannesburg. Statistics revealed that some 540 000 new vehicles have rolled onto SA roads in the last year. “With another leading position for TSAM, these figures,” says Andrew Kirby, President and CEO, “are still not quite at the levels of pre-Covid markets. “In 2023 the number of new-vehicle sales was 531 775, with 2024 posting 515 712 – a 3% drop.
However, various new segments of the overall car market had produced excellent results for the largely local manufactured models like the Toyota Cross, which posted a remarkable almost 4 000 units sold in December last year alone. Toyota have held prime position for nearly 45 consecutive years. Along with this, their Hilux export leading volumes also climbed with the double cab posting excellent volumes.
Kirby intimated that some market disturbance in the taxi industry which saw significant units fall. Unfortunately, suspected gangsters were granted bank finance to buy thousands of taxis, but stopped paying and disappeared with the cash. This saw a monthly sales figure collapse from 1 400 to 300 a month. Toyota have now recovered to 600 a month. Vehicle exports took a knock last year dropping by a reported 22.8% compared with the previous year from 399 594 to 308 830.
The real worry is the announcement that ArvelorMittal SA (Amsa’s) to close its Newcastle long-steel factory. This may result in more than 100 000 job losses and will impact the local automotive sector badly.
Renai Moothilal, CEO of the National Association of Automotive Component and Allied Manufacturers (Naacam) and Mike Mbasa, CEO of vehicle manufacturers and importers association Naamsa, were hopeful to avert this situation as we cannot lose our steel industry and added great insight at the event.
Competition from new players showed Toyota the unequal playing fields of subsidised manufacturing coming from China. An increase in market penetration of some 40% has come from Chinese and Indian brands.
Local exports will become impacted as ever more stringent fuel emission regulations with Euro 4/5/6/7 are introduced. This equals punitive fines for vehicle makers who don’t comply going forwards, where electric vehicles and hybrid-models are fast expanding in sales volumes.
There are predictions of a volume of around 60% for electric cars by 2027 on European roads alone.
It wasn’t all serious stuff. Leon Theron, senior Vice President: sales and marketing got to reveal a host of new models that are due for market launch this first quarter. The Lexus Lx 700 ultimate 4×4 model took pride of place with an all-new bolder concept design. The astounding success of Toyota’s Cross range looks to be continuing its trend well into 2025.
The final part of the event featured the Dakar team and their efforts to achieve first and second place with the Toyota Hilux off-roader. At a cost of R15 million for each entrant, their team and crew, it was a fantastic result which they had trained hard for. The Dakar is arguably the most treacherous and gruelling event on the racing calendar.
Local racing aces Lategan and Cummings, who finished second by just a fraction of some four minutes, explained the arduous task of keeping up with the pressures of the race.
The enormous always thought through effort by TSAM to keep on top of everything that they compete in, be it manufacturing or sport, plus the many sponsorships that the company engage in, is intuitive of a proud track-record of being a masthead company in South African ambassadorship at every level of company activity.
By Ian Groat
