He doesn't need those toys. Take them all away and put them in the attic. If he's been doing it for a year, it's not a phase. I don't think you can teach a child to play "correctly" (such as showing him the "right way" to push a car, and I don't think telling a young child to stop does much good, frankly.
You may be taking the toys away (which is what I would do), but you are giving them back either too soon or too often. You've done this over the course of a year with no change in behavior? Stop doing it and expecting a different result.
I agree with B about Nerf and foam toys. After a month or so, I think you can consider one of those hammer toys where you hammer the balls (or whatever shape) into the hole, or a toy workbench. But if he takes the hammer to the walls or the furniture, just take them away for a day the first time, and for a week the second time. Don't discuss it. Just say exactly (and yes, exactly) the same words each time, such as "We don't bang toys." Choose your own phrase, but make it 4-5 words at the absolute most. That's it. Nothing more, and nothing different the next time.
When the weather is good enough to be outside, I think a sandbox might be fine. I'd get some old metal bowls, a sieve or colander, and a pot at a yard sale, and skip the plastic/breakable buckets. I'd also use some heavy outdoor toys (kiddie cars, etc.) and let him burn off some energy that way.
Does he do the same thing with household objects? Does he grab a wooden spoon or a sauce pan from the cabinet and do that too? Does he climb up and take the phone or the stapler from the desk and do that? Or is it limited to "his" things? That would be interesting to know. If it's just his own things, then it's the way he views toys and what they are for.
Is he meeting all his milestones in every other area? Is he appropriately verbal, with good hearing? Does he engage with other kids at the same rate as you would expect at this age? Has he developed and changed in other ways, at an appropriate pace, in the past year? Is he free of any signs of sensory issues? If not, I'd discuss the entire matter with the pediatrician.