Chinese threat 'very real', says Toyota SA boss

The head of Toyota South Africa Motors admits the competition from new Chinese brands entering the local market is “very real”, saying “we need to respond”…

At the end of 2024, Toyota will mark 44 straight years of serving as South Africa’s best-selling automotive brand (with two months to go, the company’s lead is downright unassailable). But that doesn’t mean the Japanese firm’s local division is unconcerned by the rapid rise of new Chinese brands.

During Naamsa’s recent South African Auto Week 2024 in Cape Town, we asked Andrew Kirby, President and CEO of Toyota South Africa Motors, for his thoughts on the flood of new Chinese brands entering the local market.

*Toyota SA boss Andrew Kirby on stage at SA Auto Week 2024.*

“The competition is very real and it certainly does concern us. We know that a lot of the new brands – particularly from China – are attracting a lot of new customers. They’ve got some value propositions that are, you know, initially quite appealing.

“And we need to respond. We need to find ways in which we can compete and differentiate ourselves. It’s not going to be easy, but at the end of the day it’s going to be good for the consumer, because we all will try to do better and better, and create more value,” Kirby told us.

*The SA-built Toyota Hilux remains the country’s best-selling vehicle.*

Kirby – who has headed up Toyota SA Motors since 2016 – went on to admit that several brands from China were “innovating quickly” and, in some areas, even taking the lead in the industry.

“What’s interesting about the Chinese imports is they have a tremendous focus on the in-car experience – and they really have taken the lead, I must admit. Some of it’s maybe, if I can say, not that user friendly, but the tech is good. We can learn from that and try to accelerate that aspect.

“The design’s getting better and better, and they’ve innovating quickly. We haven’t actually lost market share, but I think it’s definitely having an impact on us,” Kirby said.

Over the past few years, Chinese firms such as GWM and Chery have made significant inroads into the local market, sparking an influx of other brands (most offering high levels of standard specification at comparatively attractive prices) from the world’s second-most populous nation. Recent examples include BYD and GAC Motor, along with Chery subsidiaries such as Jaecoo, Omoda and Jetour, with yet more in the pipeline.