Toyota South Africa Motors (TSAM)

Toyota South Africa Motors (TSAM) faces a difficult task since the market progressively shifts to hybrid vehicles (BEVs). Approximately 44% of Toyota's total production from its Durban factory is sold to Europe.

Future Strategies of TSAM

By 2035, inner combustion engines will no longer be used in Europe, and in the years leading up to that date, stricter pollution regulations will go into effect.

TSAM will be collaborating with the organizations in Thailand and Japan that are in charge of Hilux design, and they are also considering what they can do in terms of production. This is undoubtedly among the company's most important and challenging business concerns. Most likely this year, Japan's toyota will choose the location for the new generation Hilux's production.

Current Challenges

Uncertainty exists regarding the government of South Africa potential assistance for TSAM as it transitions its manufacturing to new-energy vehicles (NEVs), including fuel-cell cars, hybrids, plug-in hybrids (PHEVs), and BEVs.

The Division of Industry, trade and Competition has hinted that the much delayed assistance strategy on the expansion of NEVs in South Africa will be announced in the budget address in February. TSAM is preparing to trade as many NEVs as possible in the area while still having the energy shortage and the lesser amount of charging hubs (276 as of this writing).

By 2025, TSAM intends to increase its NEV selling to at least 20 percentage points of its overall sales mix.

Sector Issues

they do not have solutions, and all the supply yet. One of the sector's issues is that the national government hasn't yet committed to a clear direction or assistance programme.

And because there is a lack of a clear policy to encourage the production and marketing of NEVs, they aren't considered a primary market for these expensive battery-powered vehicles.

According to senior VP of sales and marketing for TSAM, the company currently enjoys a 76% market share for compact NEVs in South Africa. Deals of the Durban-made hybrid Corolla Cross have a significant positive impact on this.

TSAM will also showcase a Lexus Hybrid to its local sales lineup this year, and more Lexus models are undergoing testing ahead of potential local release.