Where are the rentals, Toyota?

LATEST new vehicle registration statistics from the Motor Industry Association indicate Toyota New Zealand has gone from dominating the national rental vehicle industry to barely figuring.

Last year more than 9000 Toyotas were registered as rental vehicles – an average of 750 a month.

  The dominant vehicles were the Corolla which took a massive 20 percent share of the rental sales with 3990 registrations, followed by the RAV4 (1963 registrations), Camry (809) and Yaris (751).

But so far this year, the Toyota brand has all but disappeared from the rental scene.

MIA statistics show just nine Hilux utes and seven Hiace vans were registered as rentals last month. Year to date to the end of March just 114 Toyotas have been registered – 80 of them Yaris hatchbacks, the remainder Hilux. Yaris is on runout with a new model coming soon.

Absent were Corollas, RAV4s, Camrys, Prados and Fortuners. All were dominant models in last year’s rental rego statistics.

Sources within the rental industry say it’s a direct result of a new Toyota New Zealand policy to not offer big discounts for bulk purchases of its product. This change would add to rental companies’ costs of holding Toyota vehicles in their fleets, so they have chosen not to buy them.

As a result, it’s now the Mitsubishi ASX that is the top-selling rental vehicle with 200 registrations so far this year, followed by the Holden Trax, Ford Ranger ute and the Suzuki Swift.

TNZ’s chief operating officer Neeraj Lala said the very low volume of rental sales is the result of the company slowly moving out of the rental business for the past two years.

“We’ve been reducing our rental volume in an effort to make our business more sustainable overall,” he said.

“Our strategy is to be a business with a full value chain, involving both new and used product. As our product has become more sophisticated, with a strong emphasis on low-emission hybrid vehicles, the cost of some of that product has gone up which has meant that some parts of the chain have become less viable.

“To deal with this, we won’t discount. That includes to the rental industry.” 

Despite Toyota dipping out of the rental sector, its product remains highly popular overall.

Last month the RAV4 was the country’s most popular passenger vehicle, with 318 of them registered in a sales environment hammered by the effects of the Covid-19 shutdown. And Corolla ran second with 240 sales.

But now, the company is anticipating very harsh trading conditions for the next few months because of the corona virus pandemic.

“As a result, we’ve asked our bosses in Japan to put our April shipment on ice for a month,” said Lala.

The implications of coronavirus for New Zealand’s tourism industry are dire; it appears increasingly likely that pain is going to also be felt by rental vehicles providers. Gaining comment has so far proven impossible, as major rental companies’ offices seem to be closed.

Yet some are suggesting it will be no surprise if there are far fewer rental operators by year-end than there are now.