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.
Seemingly making reference to the recent influx of Chinese brands into South Africa’s new-vehicle market, Theron said Toyota SA Motors foresaw back in 2016 (around the time alliance discussions started with Suzuki) “what was going to come our way”.
“We’re the only OEM [original equipment manufacturer] in this country that competes in every segment of our market – from A-segment right up to premium, plus we have the [Hino] truck division. This was strategic intent to play in every single segment of the market, because we knew what was going to come to the South African market.
“To be honest, I didn’t see the scale that we’re seeing now, but we knew it was going to happen. The scale we’re seeing is automotive insanity – absolute automotive insanity. It’s coming at us so fast even we’re sitting here looking at this, saying: “what’s next?’,” he added.
Theron said Toyota SA Motors secured 20% of the so-called “small car” market in 2025, thanks largely to the Indian-sourced Starlet (16 281 units), Starlet Cross (10 439 units), Urban Cruiser (10 277 units), Vitz (9 436 units) and Rumion (5 999 units). He added “the alliance [with Suzuki] has worked very well for us” as well as for Suzuki.
In 2025, Toyota SA Motors (including Lexus and Hino sales) registered 148 122 units in South Africa, its highest total since 2007. The figure represents a 15.1% increase compared with 2024 and translates to a total market share of 24.8%. The company says it’s targeting a total of 153 000 units in 2026.
Frequently Asked Questions (FAQ) About Toyota SA’s 2026 Strategy
Q: Why is Toyota refusing to lower its prices to compete with new Chinese brands?
A: Toyota believes that “price wars” ultimately damage a brand’s long-term health and the resale value for existing owners. Instead of dropping prices, Toyota is banking on its massive dealer network, established reliability and “multi-pathway” strategy (offering Hybrids, Plug-in Hybrids and EVs) to retain customers who prioritise long-term peace of mind over a lower initial purchase price.
Q: How has the alliance with Suzuki benefitted Toyota in South Africa?
A: The alliance has been a massive volume driver. In 2025, Suzuki-sourced models like the Starlet, Starlet Cross, Urban Cruiser, Vitz and Rumion accounted for a significant portion of Toyota’s passenger car sales. This partnership allowed Toyota to capture 20% of the “small car” market quickly without having to develop its own entry-level platforms from scratch, effectively acting as a shield against affordable Chinese imports.
Q: What is Toyota’s plan for 2026 to stay ahead of the “automotive insanity” mentioned?
A: Toyota plans to go on a “New Energy Vehicle” offensive in 2026, launching its first fully electric models (the bZ4X and Lexus RZ) alongside more hybrids like the Land Cruiser 300 HEV and RAV4 PHEV. Additionally, the brand is seemingly exploring a return of the Daihatsu nameplate or products to further bolster its “budget” offering, ensuring they have a vehicle for every single segment of the South African market.
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