Strinivasen Soobramoney,25, was remanded in custody after he was charged with the murder of fellow tow-truck driver Bevlan Naidoo, 30.
Naidoo, who, according to his family, was passionate about the business, died after he was allegedly stabbed by an acquaintance at a Durban North convenience store last week.
Police spokesman Lieutenant Colonel Vincent Mdunge said Naidoo, who lived in Phoenix, was stabbed once in the neck and died at the scene.
His stepfather, Gary Naidoo, said the family was battling to come to terms with the killing.
Director of Jumbos Breakdown Towing Services, Altaf Dawood, described Naidoo as a "great asset" to his business.
"It's difficult to come to terms with this kind of thing, but we are confident those responsible will be brought to book," he said.