Toyota South Africa Motors (TSAM) saw its new-vehicle sales slip by 9.8% in 2024 compared with 2023 – this in an overall market that was down 3%.

The local arm of the Japanese manufacturer has, however, retained its position as long-standing market leader, despite its share of the market also dropping – down from 26.8% in 2023, to 24.9% last year.

This means that one in every four new vehicles sold in South Africa remains either a Toyota, Hino truck or Lexus premium car.

Toyota sales reached 128 663 units last year, down from 2023’s 142 612 units.

TSAM sales and marketing senior VP Leon Theron describes 2024 as “frustrating”, but says he is encouraged by the resilience of Toyota and its affiliated brands.

“To stay at number one [in the South African market] for 45 years is no mean feat. Credit goes to the incredibly talented Toyota crew – from our sales, marketing and aftersales teams to our dealer staff, including our suppliers – you have pulled off yet another laudable performance, in spite of difficult trading conditions. And of course, we couldn’t have done it without the loyal patronage of our customers.”

Toyota may have to put in some extra effort in the years to come to retain its crown, as the current onslaught of Chinese newcomers looks set to continue.

Priced well below new-vehicle offerings from the Japanese brand – which still charges a premium for the Toyota badge in South Africa – Chinese competitors have made inroads in especially the sports-utility vehicle and bakkie segments over the last 24 months.

This means Toyota has been challenged in terms of Fortuner, RAV4 and Hilux sales. (This said, the Hilux is still South Africa’s most popular vehicle, as it has been for more than 50 years.)

The current Hilux model, launched in 2016, is also starting to show its age compared with the new Ranger and Amarok models, for example.

Taxi sales were also affected by finance challenges in the minibus taxi industry.

TSAM’s sales were further impacted by the inability to fulfill local market demand for the new Land Cruiser 300 and Prado models, with long waiting lists for both these vehicles.

In a domestic market where affordability matters more than ever in recent history, Toyota may also have been affected negatively by a view that its vehicles are more prone to theft, which means they may also attract steeper insurance premiums.

TSAM assembles the Corolla Cross, Hilux, Fortuner, Hiace-Sesfikile and Hino models at its assembly plant in Durban.