The all-new RAV4 is now positioned as a more premium proposition in South Africa. Toyota acknowledges that Chinese brands have changed the entry-level market. Chinese cars account for more than 19 percent of new car sales in the country. In just a few years, Chinese car companies have taken over their local market, and they are also doing the same in numerous international markets. In doing so, they’ve forced some legacy brands to rethink the market positioning of their models, including Toyota. Toyota comfortably remains the world’s largest car manufacturer, but in a recent interview in South Africa, the company’s local PR chief admitted that new Chinese entrants have forced them to shift the all-new RAV4 into a more premium position, as Toyota can no longer compete lower down in the market. Read: China Is On Track For Its Worst Car Sales Since 2021, But Don’t Blame EVs “We cannot compete with the emerging Chinese brands directly on an entry-level price point,” Toyota South Africa Motors senior public relations manager Riaan Esterhuysen told Biz Community. “They have changed that market; they have shaped the market or changed the shape of the market by driving customers down to a lower and mid-tier of the segment or taking used car buyers and upselling them.” How Toyota Has Responded This is one of the first times we heard someone from Toyota acknowledge just how significantly brands from China, like BYD, Chery, and Geely, have forced it to change. In the case of the new RAV4, which now starts at 770,500 rand ($47,100) and tops out at 1,043,900 rand ($63,800), it’s now roughly $3,500 more expensive than its predecessor. This push up the market may lower sales, but could enable Toyota to make more money from the cars it sells. BYD Shark 6 As they have across much of the world, Chinese cars have poured onto South African roads in recent years, and the pace hasn’t let up. They now account for more than 19 percent of new passenger and light commercial sales, a share that looks set to keep climbing as more brands arrive and the established players expand their local lineups. Unless Toyota can slash its development times and bring prices down, its biggest Chinese rival has room to do real damage. BYD, the largest of the bunch, isn’t shy about saying so. In June, chairman Wang Chuanfu made the audacious claim that within five years the company will overtake Toyota. Last year BYD moved 4.6 million vehicles against the 11.21 million sold by the Toyota group, a tally that includes Lexus and Daihatsu, so closing a gap that wide inside five years is a tall order. BYD Sealion 6