Toyota plans to introduce three fully electric models in South Africa in 2026, a senior executive said on Thursday, entering a nascent EV market where Chinese rivals such as BYD are already competing with European carmakers.

Volvo currently dominates EV sales in South Africa, followed by BMW and Mercedes-Benz, but Chinese EV makers are starting to flood the market too as they seek new markets amid restrictions on exports to the United States and Europe.

Toyota currently only sells hybrid electric vehicles in South Africa, but leads with a commanding 67% of the market for hybrids and plug-in hybrids in 2024, with models like its Corolla Cross.

“We’re launching battery electric vehicles at the beginning of 2026, so we will have three new battery electric vehicles,” Toyota South Africa CEO Andrew Kirby told Reuters on the sidelines of an auto components conference, without providing further details.

“We do not believe that one powertrain is going to dominate in the future. So we’ll have internal combustion engines, hybrids, plug-in hybrids, battery electric vehicles, fuel cell electric vehicles and potentially even a carbon neutral internal combustion engine.”

Low incomes, high import duties, unreliable power availability and a lack of sufficient charging infrastructure have long hampered manufacturers’ efforts to sell EVs in South Africa, whose share of total sales is still very low.

On Chinese competition, Kirby said while he welcomes competition, “it’s a very strategic concern for us and we need to make sure that we respond in the right way and as quickly as possible. It’s a big challenge.”

South Africa’s automotive sector “is at an inflection point,” he added, with fairly flat production volumes, a drop in local content and a surge in imported vehicle sales.

This has prompted the big local seven car manufacturers, including Toyota, BMW, Isuzu and Volkswagen, to put together a policy recommendation document sent to the trade and industry minister, on how to support and protect the local industry, Kirby said.

“We do have some taxation structures that are a little bit counterproductive and so we’ve made some fiscally neutral policy proposals,” Kirby said, adding that proposals also include the restructuring of the rebate system.

“We are hoping that in the next six months there will be some short-term interventions that can be announced.”

Toyota has production operations in South Africa but its fully EV models will be imported initially, with the aim of making some in South Africa eventually.

Reuters

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President Cyril Ramaphosa has praised BMW South Africa’s latest investment and the launch of the locally manufactured BMW X3 Plug-in Hybrid Electric Vehicle (PHEV) as a landmark achievement for the country’s green industrialisation ambitions.

It was also a symbol of confidence in South Africa’s economic future, he said on Thursday.

Speaking at a high-level showcase held at BMW’s Rosslyn plant in Tshwane, Ramaphosa hailed the occasion as a “celebration of progress, partnership and potential”.

“The Rosslyn plant is a testament to BMW’s longstanding presence in the South African market. BMW’s roots may be in Bavaria, but its beating heart is South African. We look forward to continuing this partnership and supporting the next chapter of your journey,” he said.

The event marked the official launch of production of the X3 PHEV, the first of its kind in South Africa, and showcased the carmaker’s expanded commitment to skills development, innovation and localisation in the local automotive sector.

“Every X3 Plug-in Hybrid Electric Vehicle that rolls off the Rosslyn production line affirms BMW’s belief in our workforce, our economy and our future,” the president said.

The Rosslyn plant, which was established in 1973, was the first BMW manufacturing facility built outside of Germany.

Five decades later, it has become a cornerstone of BMW’s global operations and a symbol of enduring industrial partnership between Germany and South Africa.

“This facility is a world-class industrial asset, and its evolution into a hub for hybrid vehicle production reaffirms South Africa’s role as a global destination for automotive excellence,” Ramaphosa stated.

He applauded BMW’s investment and long-term presence as a reflection of confidence in South Africa’s people and policy direction.

The automotive sector contributes nearly 5% to South Africa’s GDP, supports more than 115,000 direct manufacturing jobs and sustains over half a million jobs across its extensive value chain.

With South Africa ranked the 22nd largest vehicle exporter globally, the industry remains a critical pillar of national industrial strategy.

Ramaphosa emphasised the importance of transitioning towards low-carbon manufacturing, noting that electrification and green mobility were not just technological trends, but urgent responses to global climate commitments.

“South Africa is ideally positioned to be a key manufacturing base for the mobility of the future. Our policy instruments such as the Automotive Production and Development Programme and the Electric Vehicle White Paper reflect our commitment to enabling this shift,” he said.

The president also confirmed that targeted incentives were being finalised to support battery cell localisation, EV component manufacturing and beneficiation of critical minerals, given the country’s rich reserves of essential battery materials.

Ramaphosa referred to the recently announced tariff adjustments by the United States, warning that overreliance on a few export markets posed economic risks.

“This underlines the importance of diversifying our markets and accelerating local value creation,” he said.

BMW’s move to produce hybrids locally could help cushion the sector against such shocks while enabling it to tap into growing African and EU markets for clean vehicles.

Ramaphosa commended BMW’s far-reaching social impact, citing its Youth Employment Service (YES) partnership, training programmes and long-standing support for black industrialists, young women professionals and local township suppliers.

Since 1978, BMW’s Rosslyn Training Academy has trained over 2000 artisans and now trains 300 apprentices annually.

Its YES partnership has created more than 3500 opportunities for youth across multiple sectors since 2022.

Additionally, the BMW South Africa IT Hub in Tshwane employs more than 2000 professionals, including software engineers and digital specialists.

Gauteng premier Panyaza Lesufi echoed the president’s sentiments, calling the new investment “real economic transformation”, while highlighting the local economic benefits.

“This is where factories grow, businesses thrive and communities prosper,” he said.

BMW board member for production and chairperson of BMW South Africa, Milan Nedeljković, reinforced the company’s commitment to South Africa.

“The X3 was recently named South Africa’s Car of the Year, and that is a tribute to the exceptional quality of our local plant. Beyond production, we are committed to socio-economic upliftment through training, skills and inclusion,” he said.

BMW Rosslyn plant director Danny Bester also paid tribute to the dedication of plant employees, crediting their passion and technical excellence for the facility’s success.

The president invited BMW to again be a flagship partner in the upcoming South Africa Investment Conference, urging greater cooperation on localisation, skills development, battery manufacturing and township economic inclusion.

INSIDE POLITICS

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