In just a few years, Chinese automakers have not only dominated their domestic market but also expanded globally. This surge compels many established brands, including Toyota, to re-evaluate their product positioning.
While maintaining its status as the world's largest automaker, a Toyota representative in South Africa recently acknowledged that new Chinese competitors have pressured the company to move the new RAV4 model to a more premium segment, as it can no longer compete in the lower price range.
"We cannot directly compete with emerging Chinese brands in the budget segment," said Riaan Esterhuysen, senior manager of communications at Toyota South Africa. "They have changed the game by drawing customers into the low and mid-price segments, or convincing those who intended to buy used cars to purchase their new vehicles instead."
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The new generation RAV4 model at a dealership in Johannesburg, South Africa. Photo: Halfway Toyota Fourways
This marks one of the rare instances a Toyota representative has admitted the strong impact of Chinese brands like BYD, Chery, and Geely, which has forced the Japanese automaker to alter its strategy.
For the new RAV4 line in the South African market, the starting price currently stands at 770,500 rand (approximately 47,100 USD), with the top-tier version reaching 1,043,900 rand (approximately 63,800 USD). This represents an increase of about 3,500 USD compared to the previous generation. While pushing the product to a higher price point may reduce sales volume, it allows the company to optimize profit per vehicle sold.
Similar to many other regions, Chinese automobiles are flooding into South Africa at an unstoppable pace. This group now accounts for over 19% of the new passenger and light commercial vehicle market share. This figure is expected to continue rising as more new brands enter and established names expand their product portfolios.
A recent report by TransUnion Mobility Insights also revealed that Chinese brands increased sales by 75% in the first Quarter this year compared to the same period in 2025.
In South Africa, the cheapest electric vehicle is the Geely E2 (or EX2), and the most affordable plug-in hybrid is the BYD Atto 2.
Unless Toyota can shorten vehicle development times and reduce costs, Chinese competitors will continue to exert significant pressure.
BYD, currently the largest Chinese brand, openly expresses its ambition. In June, Chairman Wang Chuanfu declared that BYD would surpass Toyota within the next 5 years. In 2025, BYD achieved sales of 4,6 million vehicles, while the Toyota group (including Lexus and Daihatsu) sold 11,21 million vehicles. Closing this gap in half a decade is a significant challenge.
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