Hybrid Toyota Hilux and Fortuner models confirmed for South Africa

South African consumers can expect mild-hybrid electric vehicle (MHEV) versions of the popular Toyota Hilux and Fortuner next year.

This was confirmed by Leon Theron, senior vice-president of sales and marketing for Toyota South Africa Motors (TSAM).

Theron hosted a roundtable discussion with members of the media recently and was supported by Glenn Crompton, vice-president of marketing, as well as Koji Nakamura, chief sales co-ordinator for Toyota Tshusho Corporation.

The local release of hybrid Hilux and Fortuner derivatives forms part of what the brand describes as a multi-pathway approach to electrification.

“You all know there was a change of guard, Akio [Toyoda] stepped down as the president of Toyota global. He's now the chair and still keeping a close eye on what's happening in the business,” Theron said.

Koji Sato, the new president of the firm, has been vocal in touting a more aggressive shift towards electrification.

“Toyota has been criticised, Akio has been criticised, for his stance on new energy. My view is very similar to his, it's always been,” said Theron.

“We believe as Toyota that one size does not fit all. Every market has its own requirements which we need to adapt to.

“It's easy to say go full battery electric vehicle (BEV) or go full plug-in hybrid electric vehicle (PHEV), but South Africa and Africa's operating conditions are vastly different to elsewhere.”

The multi-pathway approach outlined by the company will see the gradual expansion of electrified offerings, rather than a radical cut-off when it comes to internal combustion engines, as a number of global automakers have avowed.

Among the areas TSAM will focus on is pandering to a demand for hybrid electric vehicle (HEV) derivatives in smaller segments, planning to sustain the success the brand has enjoyed with the locally produced Corolla Cross HEV.

Theron said the company aims to reduce its CO2 footprint by 40% by 2026, forecasting a ratio of 3:1 in HEV vs BEV.

“From a TSAM perspective, by 2025, we are looking at 22,000 new energy vehicle (NEV) units, by 2030 we want to be at 20%, which will account for 54,000 units.”

Late last year, the automaker brought in trial units of the RAV4 PHEV to gauge feedback from customers and critics.

“One fundamental we need to get right about PHEV is the price. It's expensive technology and our product team is working around the clock with Toyota global. If we can get the pricing of this right, I can tell you this is the way to go.”

In 2025, our market is expected to receive the bZ4X BEV, with its all-electric powertrain. Earlier this year Sowetan Motoring had the opportunity to sample the Lexus equivalent of the model, the Lexus Z 450e, and came away impressed by its performance, agility and overall packaging.

According to Theron, TSAM is engaged in groundwork in anticipation of forthcoming electric developments. This included sending a team to European countries such as Norway, one of the leading electric markets, to study methods and challenges. Developing infrastructure and upskilling dealership operators is also part of the strategy.

Theron cautioned that accelerating an electric roll-out too quickly would have consequences for its local business.

“Our dealerships will lose as much as 70% of their revenue from aftersales service. Think about the jobs created in the automotive business. It would be irresponsible.”

In addition to electrification, Theron also discussed the development of hydrogen and carbon neutral fuels, adding there are already such plants established in other countries with involvement from Toyota. Motorsport serves as a crucial proving ground for such undertakings, explained Theron, with reference to the hydrogen GR Yaris rally prototype.

On the hydrogen front, we were given a taste of things at the brand’s State of the Motor Industry address at the beginning of 2023, when the striking Mirai was displayed.

In addition to Toyota and Lexus, the electrification strategy will include heavy commercial vehicles, as Theron claimed conformity tests were already under way for greener derivatives of certain Hino models.

According to Theron, affordability of NEV offerings would increase with time.

“Looking at the development going on with batteries at the moment, we will become even more cost competitive when it comes to hybrid because of the volume we can sell in addition to the cost of battery production changing.”

During the Q&A session, a question on the possibility of a future half-ton commercial vehicle was posed.

“It's a difficult question our dealer network and customers have asked us. There's a whole lot of development going on. Hopefully we should have something in the next couple of years. It's a not a half-ton, but it's something I believe will take the market by storm. It's all I can stay at this stage.”

Glenn Crompton dropped further hints.

“Think about it as a solution for the African continent, emerging markets, something that is more affordable than a Hilux, same sort of space, but more affordable,” he said.

Despite the electricity supply challenges faced by the country, Theron expressed a bullish outlook about Toyota’s performance in 2023.

“Our number for this year is 160,000 units, including Hino, Toyota, Lexus. The team consistently challenges me that it's going to be tough. I know it's going to be tough, but Toyota is a brand leader that changes the rules when it comes to market share and volume.”

Conceding to negative sentiment, Theron countered: “Our commodity prices are still good, the mining industry is booming, the agricultural sector is booming.”

He said growth in the small and medium enterprise sector was a positive indication, saying since the Covid-19 pandemic, the company has seen fleet sales in this market grow by as much as 25%.

Crompton echoed the feeling.

“South Africans are renowned for making a plan. Our plant that was flooded last year — it was destroyed — even the most optimistic view from Toyota global was 18 months. We got the plant running in three months,” he said.

“That's overcoming the impossible.”

“If you look at the investment in the first quarter of this year of private industry in energy, it's equivalent to 2.3 gigawatts. That's half of Medupi power plant, so if government can't make it work, private sector will.”

Lastly, Theron was asked about the prospect of Chinese rivals in the local market.

“I've got a firm belief, know your enemy, but don't have too many sleepless nights about it. I don't mean that arrogantly,” he said.

“Yes, they are a threat, they bring in models at a much quicker pace — at competitive prices, but it's healthy competition. I'm happy to compete with them. We just need to find smarter ways, that's our job.”

Theron said he was recently asked how he felt about Ford outpacing Toyota in the new vehicle sales race last month.

“Good, happy for them — it's healthy competition — but it doesn't mean we're going to sit down.”