Toyota Australia has identified customer service and a robust dealer network as crucial elements for established car brands to maintain their stronghold in the increasingly competitive Australian automotive market.
As the industry braces for the entry of several new Chinese marques in 2025, Toyota's sales chief Sean Hanley emphasizes the importance of these traditional strengths.
Market Saturation and New Entrants
- Over 65 car brands expected to compete in the Australian market by 2025
- At least six new Chinese marques set to enter the market
- Potential for market fragmentation and smaller overall sales volume
Toyota's Perspective
Sean Hanley, Toyota Australia's sales chief, states:
- Customer service will be a key differentiator for brand survival
- Established brands with well-invested networks are likely to remain strong
- Servicing customers across Australia's vast geography is a significant challenge for new entrants
Industry Concerns
- Australian Automotive Dealer Association (AADA) predicts more brand casualties
- Recent exit of legacy brands, including Citroen
- Increasing presence of Chinese brands like Deepal, Leapmotor, Xpeng, and Zeekr
Toyota's Strategy
- Focus on quality sales and customer experience
- Leverage their established dealer network and customer service reputation
- Maintain market leadership (19.5% market share in 2024)
As the Australian automotive landscape evolves with the influx of new players, particularly from China, Toyota's emphasis on customer service and dealer networks highlights a potential strategy for established brands to maintain their market positions.
This approach not only leverages existing strengths but also addresses the unique challenges of the Australian market, including its vast geography and customer expectations.
As competition intensifies, the ability to provide consistent, high-quality customer service may indeed prove to be the deciding factor in determining which brands thrive in this increasingly crowded marketplace.
Dylan Anderson
