Toyota NZ – Neeraj Lala
Company Vehicle: Can you identify your brand’s single leadership area when it comes to non-ice product? PHEV/BEV/SELF charge hybrid/mhev or other? Toyota NZ: Toyota is a leader in Hybrid Electric Vehicles or HEVS. We offer the widest range of HEVS in New Zealand, and through this low emission technology, it has been the biggest growth for us in terms of sales and reduction of CO2. While the charging infrastructure for BEVS continues to grow, it’s not growing at the same rate as the adoption of low emission technology so consumers are after powertrain choice.
Currently Toyota’s sales sit at approximately 42 percent HEVS overall year to date, while Lexus sits at 80 percent electrification (HEVS, PHEVS, and BEVS) year to date. This has equated to a CO2 reduction of approximately 40 percent for Lexus and 15 percent for Toyota over the last five years across our vehicle sales.
Toyota is focused on ensuring that the decarbonisation of our fleet is a just transition, where no customer is left behind. We offer HEV technology across our new and used vehicles we sell to ensure that this low emission technology is affordable and accessible to as many kiwis as possible.
Company Vehicle: What – in your opinion – makes your ‘hero’ non-ice solution better than the others?
Toyota NZ: See the above answers.
Company Vehicle: Outside of pricing specials, does your brand offer incentives to fleet buyers in respect of non-ice vehicles? Toyota NZ: Toyota remains the only major automotive brand to have an agency model that provides equity for both private and fleet customers. Our fleet customers get an equitable price based on their fleet size that is a transparent driveaway price. This includes transparent pricing on the first five years of servicing or
Service Advantage, which provides those fleet buyers peace of mind.
Company Vehicle: Is Toyota on track with its non-ice vehicle plans here? Have you reached your targets in terms of supplying the market?
Toyota NZ: Yes, we are on track with our non-ice plans. Have we been able to reach our targets in terms of supply? No. Quite simply, as the market continues to recover from the global pandemic and global supply chains are hampered for all electrified technology, supply is constrained coming into New Zealand.
Company Vehicle: Do you see a ‘flattening’ of interest or are you still seeing significant uptakes of your non-ice product?
Toyota NZ: We continue to see considerable interest in our non-ice products. A good example of this is the RAV4 Hybrid, which was voted the AA People’s Choice Car of the Year twice since the latest generation launch (2019 and 2022). It is also one of the most popular HEV vehicles we sell. This highlights that HEV remains a popular choice in electrified technology as consumers continue to have choice of powertrain options including petrol/diesel models.
Company Vehicle: In your opinion, is the fleet sector engaging more with the idea of non-ice product and are they as informed about it as they should be, or are there still some gaps that need to be filled in terms of education?
Toyota NZ: There is still considerable uncertainty that remains around the just transition to decarbonising New Zealand’s carpark, which is also being driven by challenges in all areas of the supply chain.
The first uncertainty is supply of low emission technology. Continued back orders across the industry on low emissions product suggest this remains a challenge.
The second uncertainty is around Infrastructure, specifically the rollout and affordability for charging vehicles.
The third uncertainty is around policy, specifically the way that road user charges will be implemented in the future.
The fourth uncertainty is around the quality, durability and reliability of the new technology particularly around fast charging and battery life/ degradation.
There is education and testing that is needed to overcome this uncertainty in the fleet sectors.
Company Vehicle: What do you see the biggest hurdle to fleets taking up non-ice vehicles?
Toyota NZ: See above answers.
Company Vehicle: And the biggest advantage?
Toyota NZ:THE motor industry is working together to offer consumers a choice of all powertrain options and decarbonisation across the entire fleet which offers consumers considerable choice.
Company Vehicle: How have you seen government’s support of the uptake of non-ice product, particularly as it pertains to your non-ice product?
Toyota NZ: The Government’s support has allowed all technology to be accessible to consumers including HEVS.
Our strategy has always been to help all Kiwis afford the transition to electrification through ensuring that the technology is accessible to all Kiwis.
Company Vehicle: Given there is an Election in October, is there a message you would give to an incoming government, or the re-elected government should that happen?
Toyota NZ: The Motor Industry Association in partnership with government agencies are having two-way comms on various policies, and it continues to be a positive working relationship. We will continue to provide direct feedback to the government through our ministerial contacts and relationships we have and continue to build.
Company Vehicle: Has there been any new information, specifically on the electrification of a utility vehicle, which you can share: timelines, development progress, anything, even if it is status quo?
Toyota NZ: We will continue to offer Hilux till a low emission alternative is available and we are positive that we may introduce a HEV Hilux in the future. We will continue to manage our volume of Hilux within our balanced electrified portfolio till a low emission alternative is available.