Toyota boss details brand’s sales momentum

TOYOTA Australia says the new car market is shifting at pace, and that the dominance of a single model at the top of the ladder will be a feat that will become more difficult for manufacturers to maintain beyond 2025.

The Japanese importer topped the Aussie sales charts again in 2023, marking 19 out of the past 20 years on top of the ladder.

Toyota sold 215,240 new vehicles in 2023, giving the brand an 18.5 per cent share of the Australian new car market. However, the numbers are down some 6.8 market share points on the year prior – a fall of 15,810 unit sales.

Speaking with GoAuto this week, Toyota Australia vice president of sales, marketing and franchise operations Sean Hanley said supply constraints and shipping bottlenecks in the first half of 2023 were largely to blame for the year-on-year decrease.

“When we reflect on 2023, it was certainly a year of two halves. We sold just 92,950 vehicles in the first six months, but conversely in the second half, a record 123,005 vehicles were delivered by Toyota Australia,” he said.

“(That turnaround) is quite remarkable and tells the tale of greatly improved supply from May last year onwards. This enabled us to substantially reduce customer wait times, which is welcomed by our customers and indeed by Toyota.

“I expect that momentum will continue into 2024. Wait time for most models will be four to six months by mid-year, if not sooner. But we know the job is not done yet.

“As we prioritise to deliver cars to people who have been waiting extended times, we want to assure those customers who are waiting for delivery that we are doing everything possible – including prioritising their orders – to get them into their new Toyota at the earliest opportunity.”

The N80-series HiLux – introduced to the local market in 2015 – has led the market for the past seven years. The light commercial utility fought neck and neck with Ford’s next-generation Ranger throughout 2023, pipped eventually by a total of 2245 units.

Despite the introduction of the new wide-body Rogue and athletic GR Sport, the HiLux seems unable to compete with the more modern and better-equipped Ranger line-up.

“We want to congratulate Ford. The Ranger is an excellent vehicle and Ford is a strong competitor,” said Mr Hanley.

“Of course, we would have liked to have made it eight years in a row for HiLux to be number one, but it wasn’t to be – and we know we can never take our position in the market for granted.

“When you look at the monthly sales of Ranger and HiLux through 2023, it was a battle that truly went down to the wire, and the fact that both models achieved more than 60,000 unit sales is quite remarkable, and speaks a lot about Australian consumer demand.

“These are the types of vehicles Australian buyers want. Australian buyers will buy cars that suit their needs.

“I think it is interesting to note that the top three selling cars are utility vehicles. You can’t ignore that. It shows some fairly serious signals about buyer intention … and I think we’ll see a similar result in 2024. But I wouldn’t like to forecast much beyond that.”

When asked if the increased availability of electrified vehicles and cheaper imports – particularly from China – would see Toyota forfeit its lead in 2024, Mr Hanley was circumspect, saying a range of factors are likely to see a levelling on the sales dominance Toyota had enjoyed for many years.

“Australia is one of, if not the most, competitive car markets in the world. We respect all our competitors, and we take nothing for granted,” Mr Hanley told GoAuto.

“No one owns the right to be number one. It’s a position you earn through trust, by having a broad range of vehicles, and by selling reliable vehicles that people desire and that offer them the ability to do the things they wish to do with them – that is deeply important.

“As number one, we are a constant target. We must be at the top of our game to remain there. Our vehicles, our dealerships, our organisation must work hard to hold that level of trust. It is a position that is not without its challenges – and we are not exempt from the challenges of any other car company or any other business.

“We will launch our first BEV in the Australian market next month, the bZ4X, and alongside a growing electric market, we think we will see the EV market share grow to 10 per cent by the end of next year.”

Mr Hanley said that figure will grow steadily as the technology becomes better suited to larger SUV and LCV models, but not before a resurgence of hybrid and plug-in hybrid models.

“The biggest change I think is likely to happen over the next two or three years is a resurgence of hybrid and plug-in hybrid vehicles. I think they are going to find their natural position in the Australian market, which will be quite strong,” he predicted.

“And then, once your see greater levels of electrification in commercial vehicles – in all different forms – then you’ll really start to see the dynamics of the market change. I think only then will it become stronger and more consistent (from an electrification standpoint).”

In closing, Mr Hanley suggested the market will be slower next year as supply catches up with demand. He said he expects a return to what he described as pre-COVID levels, with a likely tally of between 1.05 and 1.1 million units sold by this time next year.

“The numbers certainly don’t reflect the current demand patterns. We expect the industry to return to what we call a pre-COVID normal, or a solid total of 1.05 to 1.1 million units. While that is down on the 1.2 million we saw in 2023, it is still a very strong and healthy result.

“What that means for Toyota? Well, our supplies are strong, and our order banks are incredibly healthy. Our supplies are also healthy, particularly in the first quarter of the year (2024).

“As a result, we expect to increase our sales volume, despite the market normalisation. In our own predictions, we expect to increase Toyota sales this year over 2023. This will see our market share also increase, and all going to plan, will grow to 20 per cent.”

To read more on our coverage of the 2023 new car sales year, click here.