Toyota reveals how to save legacy car brand

toyota Declaring good old-fashioned customer service and a solid dealer footprint are the carmaker’s key trump cards in maintaining a strong foothold in the Australian car market.

Australia’s already saturated new car market will enter uncharted territory in 2025 when at least six ambitious Chinese brands join the fray, bringing the number of players vying for what is expected to be a smaller pie to more than 65 and forcing even the local automotive landscape to More dispersed.

Globally, China’s auto industry has proven to be a huge disruptor of the overall auto market, stealing the bulk of sales from established brands and helping companies such as Volkswagen and Nissan struggle financially.

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But as local car market sets record in 2024, Toyota leads in 22 years^ND Toyota Australia sales chief Sean Hanley, who has enjoyed a huge 19.5 per cent share for the year running, said he believed customer service and dealer network would remain key strengths for the established car brand.

“I don’t want to comment specifically on other brands but I hope we don’t see more exits because no one is going to have any fun with it. One of the most difficult periods in automotive history was Holden’s exit from Australia,” Mr Hanley said.

“But it’s hard to see how 60-plus brands can continue to survive in a market that sells 1.2 million vehicles and has sales rising over time. You just have to do your math.

“I can’t imagine how all these brands are going to survive and how they can service their customers and service parts and invest in franchises to provide the services Australians need across a huge geographical area.

“Australia is very unique in some ways. In my opinion, we tend to talk about products or cars, and that’s important. However, I think those brands that provide the best service to their customers are the ones that will survive in Australia.

“So you have to think it’s the established brands that have stayed strong with their well-invested networks.”

Mr Hanley’s views echo similar comments from Australia’s main car retail association, the Australian Automobile Dealers Association (AADA), which has previously predicted more brand casualties in the coming months.

The list of legacy car brands that have exited the Australian market in recent years continues to grow, with the most notable recent departure being French brand Citroën.

Instead, most brands entering the Australian market originate from China, including Deepal, Leapmotor, Xpeng and Zeekr in late 2024.

Geely, Kaiwo, GAC/Aion and Chery spin-off brand Jaecoo will follow in 2025, while Foton will return to selling pickup trucks in Australia next year under new dealer Inchcape. Another possibility is Nio.

“It will be interesting to see where this all goes,” Mr Hanley said. “But from a mathematical perspective I find it very difficult for all of these car companies to be healthy, wealthy and servicing Australian customers in the way that Australian customers expect.

“For Toyota, we will continue to focus on quality sales and doing what we do best, which is providing the best experience for our customers. At the end of the day, that’s still what matters most.”