The SA Vehicle Industry Thread

Toyota SA urges auto industry to scale up production and accelerate energy transition for survival

Toyota South Africa Motors (TSAM) says the local automotive industry must urgently build scale, rebalance production and accelerate its transition to new energy vehicles if it is to remain competitive over the next decade.

Speaking at the company’s annual State of the Motoring Industry, TSAM President and CEO Andrew Kirby said the operating environment has become harder to predict, requiring greater resilience and faster decision-making.

“We live in a fairly uncertain time, both globally and in South Africa, and it is more difficult to plan and forecast. It is more difficult to anticipate what 2026 is going to bring, but in the next five to ten years - which is crucial for our planning horizons - we need to be a lot more resilient and a lot more dynamic in how we respond,” he said.

Market growth masks structural constraints

South Africa’s new vehicle market grew 15.7% year-on-year in 2025, with volumes exceeding pre-Covid 2019 levels for the first time. Total sales reached around 600,000 units.

Kirby cautioned against reading too much into the figure.

“Yes, 600,000 is a nice improvement, but it’s small,” he said. “If we consider our population size, mobility needs and the quality of public transport, the market should be a lot bigger than this.”

He said that much of the growth came from entry-level segments, reflecting constrained consumer spending rather than broad-based expansion.

“If average prices had remained the same, we would have needed GDP growth of around 3.5% to support that increase. We achieved 1.2%, so we need to see that 15.7% in perspective.”

Domestic scale critical for long-term sustainability

Kirby believes the domestic market has the potential to exceed 700,000 units annually if the right structural changes are made.

“We really lack scale in South Africa,” he said. “We are moving in the right direction, but we do need to think very carefully about how we move this into another level of scale that can support our industry overall.”

He added that a healthier domestic market would strengthen production stability and reduce vulnerability to external shocks.

 
Toyota SA Motors hints at fresh Daihatsu plans

Remember Daihatsu? Well, Toyota SA Motors has hinted it could leverage this “value-focused” brand’s products, while also confirming the high-end Century marque is on the cards…

- Toyota SA Motors eyeing Daihatsu models
- Daihatsu brand quit Mzansi back in 2015
- High-end Century marque also on cards

A high-ranking Toyota South Africa Motors executive has hinted that products from Daihatsu – a small-car specialist that exited Mzansi back in 2015 – could return to SA in some shape or form, while separately promising to “push hard” to bring the high-end Century brand to local roads.

Leon Theron, Senior Vice President of Sales & Marketing for Toyota SA Motors, made the comments during the Japanese firm’s recent State of the Motoring Industry (SOMI) 2026 event in Gauteng.

“No news to most of you that we [Toyota Motor Corporation] own Daihatsu. We would really like to get more involved now in Daihatsu in the South African context [to] give us an affordable option as a brand that we will definitely be investing in going into the future,” Theron said, without going into further detail.

It remains to be seen whether the Japanese giant’s local division plans to bring in Daihatsu as a standalone brand or simply offer selected Daihatsu products rebadged as Toyota vehicles (as it once did with the Ayla-based Toyota Agya and Terios-based Toyota Rush, for instance).

 
EU's 2035 zero-emission deadline threatens South Africa's automotive export future

The European Commission has reaffirmed its commitment to reducing CO₂ emissions from all new vehicle sales, setting a clear trajectory towards a zero-emission market by 2035.

Under the latest proposals, battery-electric and fuel-cell electric vehicles will dominate new vehicle sales in Europe beyond that date.

This has a consequence for South Africa. Europe remains one of the country’s most important export destinations, particularly for locally produced passenger vehicles.

Battery-electric vehicle sales in Europe continue to accelerate. Last year, they overtook new internal combustion engine sales for the first time, with December recording the highest monthly figures yet. The regulatory direction is matched by market demand.

Export risk without policy alignment

The European Automotive Package should not be viewed as a safety net for South Africa’s industry, according to Hiten Parmar, executive director of The Electric Mission.

“Europe’s Automotive Package announcement is no lifeline for the South African automotive industry,” he said.

According to Parmar, international regulatory measures are increasing pressure on South Africa to accelerate its transition towards local manufacturing of zero-emission vehicles and related components.

“International regulatory measures put further pressure on South Africa’s industrial transformation into local manufacturing of zero-emission vehicles and their associated components. There are thousands of jobs on the line across the value chain of our automotive industry.”

At the recent State of the Motoring Industry conference hosted by Toyota South Africa Motors, President and CEO Andrew Kirby also highlighted the need to accelerate energy transitions.

Last year, South Africa built 609,000 vehicles, with a record 411,000 exported. Exports now account for 68% of total production.

“It makes a huge contribution to our economy in terms of forex, jobs and skills. But we need to look at where those exports are going,” Kirby said.

 
Revealed! SA’s most wanted car brands & models

The South African automotive landscape is changing fast. Data from the Cars.co.za 2025 Demand Charts reveals a market in transition, where traditional powerhouses are being challenged by a surge in affordable alternatives and the relentless rise of Chinese brands.

In a market defined by economic pressure, the Cars.co.za Demand Charts makes it clear South Africans are increasingly hunting for value, utility, and reliability.

Cars.co.za’s Demand Charts measure 2 elements::

Demand on Cars.co.za at a brand level; and
Demand on Cars.co.za at a make/model level.
For this exercise, Cars.co.za analysed only vehicles younger than 5 years (new and used) and with less than 200 000 km. The metric used is leads: enquiries submitted on Cars.co.za on advertised vehicles during 2025.

Right, let’s get to the 2025 Demand Charts results!

 
From Kariega to global markets: two million VW Polos and South Africa's automotive success

2026 marks a milestone year for Volkswagen Group Africa as the company celebrates 75 years in South Africa and 30 years of Polo production at its Kariega manufacturing plant.

The Polo’s journey began in 1996 with the introduction of the Polo Classic, a four-door sedan positioned between the Citi Golf and the Golf and Jetta ranges. In its first year of production, 5,460 units were built at Kariega, establishing the Polo as a key part of Volkswagen’s South African line-up.

The hatchback version followed in 1998. An updated Polo Classic introduced in 2003 went on to win the South African Guild of Motoring Journalists’ Car of the Year award. The Polo achieved the same honour again in 2011, sharing the title that year.

Since production began, Kariega has manufactured four generations of the Polo, with the latest model having entered production in 2021. Over three decades, the Polo has become one of the most significant vehicles produced at the plant.

Built local for global

In 2024, Kariega reached another milestone when it became the sole global production and export hub for the Polo destined for Europe and the Asia-Pacific region. This includes the Polo GTI, built exclusively at Kariega.

Polos built in South Africa are now exported to 38 countries, while the model continues to be sold locally alongside the Polo Vivo.

In the same year, Volkswagen Group Africa recorded its highest annual production volume, building 167,084 vehicles. Of those, 131,485 Polos were exported, while 35,599 Polos and Polo Vivos were sold locally.

By the end of 2025, more than two million Polos had been built at Kariega. Of those, 595,043 units were sold locally, while 1,421,960 were exported, with the United Kingdom the largest export destination.

 
South African car exports hit record high

South African vehicle exports reached a historic high in 2025, according to figures reported by the National Association of Automobile Manufacturers of South Africa (NAAMSA) on Tuesday.

The data represents about a 6% increase from units exported in 2024.

“In 2025, vehicle exports increased to a record 414,268 units, up 5.9% compared to the 391,128 units exported in 2024,” the report stated.

According to the association, thousands of South African vehicles reached 109 global markets in 2025.

High figures were achieved despite American tariffs, which reduced deliveries to the US from 25,554 units in 2024 to 6,530 units. The fall in the US direction, however, was offset by the increase in exports to Europe – from 295,762 units to 332,695 units over the same period.

The European Union and UK accounted for over 80% of the country’s total vehicle exports.

“Despite heightened protectionism across several of South Africa’s key export markets, domestic vehicle exports continued to show resilience,” the association stated.

Vehicle exports rose by 1.7% in the fourth quarter of 2025 compared to the same period in 2024, driven by increased shipments to most major regions, although exports to Asia declined due to lower deliveries to Japan, the report stated.

South African vehicle exports reached a historic high in 2025, according to figures reported by the National Association of Automobile Manufacturers of South Africa (NAAMSA) on Tuesday.

The data represents about a 6% increase from units exported in 2024.

“In 2025, vehicle exports increased to a record 414,268 units, up 5.9% compared to the 391,128 units exported in 2024,” the report stated.

According to the association, thousands of South African vehicles reached 109 global markets in 2025.

High figures were achieved despite American tariffs, which reduced deliveries to the US from 25,554 units in 2024 to 6,530 units. The fall in the US direction, however, was offset by the increase in exports to Europe – from 295,762 units to 332,695 units over the same period.

 
Toyota SA Motors ‘won’t get into price wars’

A high-ranking Toyota SA Motors executive says the Japanese brand’s local division won’t get into “price wars” with rivals, adding “we are not scared of our competitors”…

- “We don’t drop the prices on our vehicles”
- Toyota SA is “not scared” of its competitors
- Alliance with Suzuki has “worked very well”

Toyota South Africa Motors – which has been Mzansi’s best-selling automaker for 46 consecutive years now – says it won’t get into “price wars” with brands playing in the local entry-level vehicle market, adding it is “not scared” of its competitors.

Leon Theron, Senior Vice President of Sales & Marketing for Toyota SA Motors, made the comments during the Japanese firm’s recent State of the Motoring Industry (SOMI) 2026 event in Gauteng.

“We’ve been very successful in the entry market and, of course, we can see the price war that’s going on in the entry market. We don’t play price wars. We don’t drop the prices on our vehicles, because that’s the wrong strategy. You simply hurt your brand; you hurt the retail value of your brand.

“I just want to put it out there – we are not scared of our competitors. We’re not. We do welcome it [competition]. We like it, because it makes us better and at the end of the day, we have to sharpen our game. That’s the role that we have to play as the leading brand in the South African context. And that’s what we’re going to be doing this year,” Theron said.

 
Top 10 most dependable car brands according to J.D. Power 2026 study

We have rounded up the top ten most dependable car brands based on a recent study by J.D. Power, ranking vehicle reliability based on the number of problems per 100 vehicles.

Top 10 most dependable car brands
Lexus topped the list with an average of 151 PP100, also claiming the title of most dependable model with the IS, followed by Buick and Mini with 160 and 168 PP100, respectively. Cadillac, Chevrolet and Subaru took fourth, fifth and sixth place with 175, 178 and 181 PP100, respectively. Porsche and Toyota followed closely, scoring 182 and 185 PP100, respectively, while Kia and Nissan round off the top 10 with 193 and 194 PP100, respectively.

Lexus – 151 PP100
Buick – 160 PP100
Mini – 168 PP100
Cadillac – 175 PP100
Chevrolet – 178 PP100
Subaru – 181 PP100
Porsche – 182 PP100
Toyota – 185 PP100
Kia – 193 PP100
Nissan – 194 PP100

 
SA's R160bn used car surge: SUV and hybrid demand reaches record highs

Over the course of last year, potential used car buyers generated 156 million sessions, conducted 649 million searches, viewed 439 million adverts, and opened more than 984 million pages. According to data released by "AutoTrader", more than 20 vehicle brands were searched by more than 46 million users.

Used car sales totalled 383 410 units in 2025, with a combined value of R160.1 billion. This represents a 7% increase compared to 2024.

Monetary policy played a role in supporting the market, with four interest rate cuts implemented in January, May, July and November, reducing borrowing costs by a total of 100 basis points and easing pressure on vehicle finance.

Despite improved conditions, buyer behaviour remained measured, with affordability and running costs continuing to influence purchasing decisions.

BMW reclaimed its position as the most-searched brand, generating 76 million searches. At the model level, the Volkswagen Polo became the most-searched vehicle, replacing the long-standing leader, the Toyota Hilux.

However, actual sales volumes remained consistent with previous trends. The Ford Ranger, Volkswagen Polo Vivo, and Toyota Hilux were the top-selling used vehicles overall, reflecting continued demand for established nameplates.

Enquiry data further highlighted the strength of the bakkie segment, with the Ford Ranger maintaining its position as the most-enquired vehicle in 2025.

 
Isuzu jumps Chery! SA’s new-vehicle sales in February 2026

In February 2026, South Africa’s new-vehicle market grew 11.4% year on year, resulting in the industry’s highest February sales total since 2013. Here’s your overview, including the top-selling brands…

- Local sales cross 53 000-unit barrier in February 2026
- Domestic market’s highest February total in 13 years
- Isuzu bounces back, forcing Chery down to 8th place
- New-vehicle exports slump some 28.1% year on year

In February 2026, sales in South Africa’s new-vehicle market increased 11.4% year on year to 53 455 units, representing not only the local industry’s 17th consecutive month of year-on-year growth but also its highest February sales figure since as far back as 2013. Furthermore, the total domestic tally was 6.8% up on January 2026’s performance.

That said, exports of new vehicles from Mzansi slumped 28.1% year on year to 24 221 units, with industry representative body Naamsa pointing to both “heightened protectionism across several of South Africa’s key export markets” and “increasingly stringent decarbonisation requirements in destination markets” as key reasons for this decline.

New-vehicle sales summary for February 2026

- Aggregate new-vehicle sales of 53 455 units increased by 11.4% (5 461 units) compared to February 2025.
- New passenger-vehicle sales of 37 576 units increased by 11.3% (3 826 units) compared to February 2025.
- New light-commercial vehicle sales of 13 218 units increased by 11.9% (1 402 units) compared to February 2025.
- Export sales of 24 221 units decreased by 28.1% (9 463 units) compared to February 2025.

10 best-selling automakers in SA in February 2026

1. Toyota – 12 272 units

2. Suzuki – 6 562 units

3. Volkswagen Group – 4 895 units

4. Hyundai – 3 136 units

5. Ford – 2 928 units

6. GWM – 2 614 units

7. Isuzu – 2 371 units

8. Chery – 2 312 units

9. Mahindra – 1 996 units

10. Kia – 1 746 units

 
Top 10 best-selling car brands in SA – February 2026

We’ve rounded up the top 10 best-selling car brands in South Africa in February 2026. See the list below…

In February 2026, naamsa, the Automotive Business Council of South Africa, reported a total number of 53 455 new cars were sold in the second month of the new year – an increase of 5 461 units over the 47 994 new vehicles sold in February 2025. In addition to the year-on-year sales increase, February 2026’s new-car sales signified an increase of 3 382 units sold compared to the 50 073 units sold in January 2026.

Toyota maintained its sales lead, with the Japanese automaker’s South African arm registering 12 272 new cars sold. Suzuki retained second spot on the podium, followed by Volkswagen, with 6 562 and 4 895 new Suzukis and VWs leaving showroom floors in the second month of 2026, respectively.

Hyundai remained in fourth position, ahead of Ford and GWM, who retained their fifth and sixth spots, respectively. Isuzu made a significant comeback in February 2026; reclaiming seventh place from Chery, which placed eighth. Mahindra placed ninth, relegating Kia to 10th spot.

Top 10 best-selling car brands in SA in February 2026

Toyota – 12 272 units (up 486)
Suzuki – 6 562 units (up 152)
Volkswagen – 4 895 units (up 121)
Hyundai – 3 136 units (up 88)
Ford – 2 928 units (up 250)
GWM – 2 614 units (up 93)
Isuzu – 2 371 units (up 765)
Chery – 2 312 units (up 54)
Mahindra – 1 996 units (up 325)
Kia – 1 746 units (down 142)

 
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