Toyota fights back against BYD with extra stock, higher 2026 sales forecast

Toyota Australia has hit back at what could be its closest competitor this year, BYD, by announcing extra stocks of new vehicles and a higher full-year sales forecast in 2026, plus the early arrival of its first plug-in hybrid model, the RAV4 PHEV.

The Japanese giant and local auto market leader for the past 29 years yesterday confirmed the first PHEV version of Australia’s favourite SUV would arrive in dealerships late this month, earlier than it previously indicated.

Toyota announced pricing for its three-variant RAV4 PHEV lineup last November, when it opened the order books ahead of first deliveries, which at the time were said to take place in the third quarter of this year (July to September).

There is no change to the $58,840 starting price of the RAV4 PHEV lineup, which is expected to eventually account for up to one in three sales of the sixth-generation mid-size SUV that arrived here in late 2025.

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However, in a press release issued this morning – as BYD stages a media event to mark the arrival of almost 5000 new BYD and Denza vehicles in Australia – Toyota announced an additional 10,000 cars have been secured for Australia in 2026, when the market leader says it now expects to sell 220,000 vehicles.

Toyota says its additional allocation and higher full-year sales forecast “represents an important prioritisation of Australian customers” and “continued customer confidence in the brand and its broad portfolio”, and the Japanese giant underlined the fact it remains the only brand to sell in excess of 200,000 vehicles in Australia in a single year.

“Toyota has been part of Australian communities for almost seventy years, and we continue to see strong demand from customers who rely on us for their mobility needs,” said Toyota Australia vice president of sales, marketing and franchise operations John Pappas.

“This increase in supply is great news for our customers and dealers. It reflects the strong partnership we have with Toyota globally to prioritise the Australian market.

“Vehicles like HiLux remain essential for many Australians, while RAV4 continues to lead the SUV segment thanks to its versatility, drivability and efficiency.

“We will continue working closely with our global production teams to secure additional supply where possible and ensure we are meeting the needs of Australian customers today and into the future.”

BYD was Australia’s second-best-selling auto brand in April, when it sold an all-time high number of 7702 vehicles, beating its previous record set just a month earlier of 7217 vehicles and finishing behind only Toyota (15,185 deliveries).

To April this year, it’s sitting in fifth place with 25,243 sales, just a few hundred units shy of fourth-placed Ford (25,920), but BYD is planning to be a top-three player overall in 2026, and its previous independent distributor boldly stated the Chinese brand would topple Toyota to become Australian market leader by 2030.

BYD Australia says its “first special shipment” of 4810 new vehicles from Shanghai, which arrives in Melbourne today aboard one of the automaker’s eight purpose-built, roll-on roll-off (RORO) car-carrying vessels, called the BYD Zhengzhou, is intended to meet strong local demand for PHEVs and EVs.

BYD says the ship’s cargo will be evenly dispersed across Melbourne, Sydney and Brisbane, with “essential workers” among the first to take delivery of vehicles on board.

Over 2000 of the 4810 vehicles on the ship are BYD Atto 2 and Sealion 7 electric SUVs, but BYD also notes examples of the Denza B5 off-road SUV and D9 people mover are also on the manifest, while a video of the ship being loaded also shows BYD Atto 1, Sealion 6, Sealion 8, Seal 6 and Shark 6 vehicles.

Toyota, meanwhile, is about to release a quartet of new electrified models as part of its “multi-pathway” product strategy for reducing CO2 emissions, including the RAV4 PHEV, HiLux BEV, bZ4X Touring, and LandCruiser 300 Series Performance Hybrid, all of which will be launched late this month.

“The arrival of our first plug-in hybrid model further expands our multi-pathway strategy that aims to provide the right powertrain for the right vehicle and its intended use,” said Mr Pappas.

“While we are continuing to expand our battery-electric range with the arrival of the bZ4X Touring model, we have always said that BEVs are only one part of a broader mix of solutions to reducing emissions, as our vehicles have to be fit for purpose.

“That means continuing to offer customers a mix of hybrid, BEV, PHEV, diesel, petrol and FCEV (fuel-cell electric vehicles) powertrains while always looking to ways to improve efficiency, performance and reduce CO2 tailpipe emissions.”

Globally, Toyota has reduced its production targets due to conflict in the Middle East, which has resulted in higher fuel prices and weaker demand for its vehicles.

Business news outlet Nikkei Asia reports Toyota has told suppliers it will be cutting production output by approximately 83,000 vehicles over the next six months, predominantly affecting Middle Eastern markets.

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