Sales of NEVS on the rise in South Africa

AMID a global emphasis on green energy and the subsequent global energy transition, total sales of new energy vehicles ( NEVS) in South Africa increased by 65 per cent year- on- year in 2023, with hybrid vehicles making up most of these sales. Toyota South Africa Motors ( TSAM) witnessed a 22 per cent year- on- year increase in the sale of NEVS.

“If we keep going in this trajectory, it’s going to be interesting to see what the next five years will look like,” TSAM president and CEO Andrew Kirby said at this year’s State of the Motor Industry event held in Kyalami, Gauteng.

TSAM senior sales and marketing VP, Leon Theron pointed out that 42 per cent of the Lexus range consists of NEVS.

“We have done a lot in the last three years to really increase our footprint within the NEV space,” expressed Theron.

He noted that TSAM had sold about 142 000 vehicles in 2023, making this the second- highest volume since 2007 despite the market dip experienced in the second quarter of 2023.

Theron described last year as a “phenomenally successful year” for TSAM, noting that the company also achieved its highest market share of 26.8 per cent.

Kirby said that a soft market was expected for the first half of this year, but that it was expected to normalise in the second half of the year. Hence, he forecasts that South Africa’s overall vehicle sales will reach about 540 000 units for the full year.

“Until we have that level of stability and momentum, we will always be in a flat environment, but growth is growth. Every year, January, we expect that things will bring prosperity and we are looking forward to that prosperity in 2024,” expressed TSAM financial services CEO Thabo Manaka.

Meanwhile, Kirby said an increasing shift towards technological innovations was driving significant changes for Toyota, including the integration of customised software into vehicle operating systems.

“Gone are the days where we think just about the electrical and mechanical aspects of our products and the value they bring. Software is going to become a very big ( part) of how you experience mobility, not just getting from A to B. “We also know that we need to play a strong role in helping customers in their carbon neutral journey, not just about the emissions from the vehicle itself. And we have aspirations to be very much part of that.”

Hence, Toyota is adopting a fourfold approach with regard to “shifting into the future”.