Toyota has reportedly announced plans to launch three fully-electric vehicle (EV) models for sale in South Africa in 2026.

This move will see the automotive giant enter a growing EV sector where competition includes Chinese manufacturers and European brands.

According to Reuters, currently, Volvo leads the EV market in South Africa, with Mercedes-Benz and BMW also holding significant shares.

However, Chinese EV companies are increasingly entering the market, driven by export restrictions to the US and Europe.

As of now, Toyota's presence in the South African market is through its hybrid EVs, with the Corolla Cross among its popular models. The company boasts a 67% market share for hybrids and plug-in hybrids as of 2024.

Toyota South Africa CEO Andrew Kirby revealed at an auto components conference, as saying: "We're launching battery electric vehicles at the beginning of 2026, so we will have three new battery electric vehicles."

The South African EV market faces challenges such as low average incomes, inconsistent power supply, high import taxes, and inadequate charging infrastructure.

These factors have historically hindered EV sales, which still represent a small fraction of total vehicle sales in the country, the report stated.

Kirby acknowledged the competitive pressure from Chinese manufacturers, emphasising the strategic importance of responding effectively and swiftly to maintain market position.

He also commented on the current state of the South African automotive industry, stating that it "is at an inflection point," experiencing a critical juncture with stagnant production volumes, reduced local content, and an increase in imported vehicle sales.

In response, major local car manufacturers, including BMW, Toyota, Volkswagen, and Isuzu, are said to have submitted a policy recommendation document to the trade and industry minister to support and safeguard the local automotive sector, added Kirby.

While Toyota's EV models will initially be imported, there are plans to eventually produce some models domestically.

Recently, the South African automotive industry has faced significant challenges, with 12 company closures and over 4,000 job losses in the past two years.

Earlier this month, Toyota adjusted its global vehicle production forecast, expecting to produce ten million vehicles under the Toyota and Lexus brands in 2025, an increase from the previously projected 9.9 million units in 2024.

This forecast does not include production from its subsidiaries Daihatsu and Hino Motors.