Market leader makes clear acquisition of big rental provider won’t see it become a one-make shop.

IN wake of acquiring one of the largest Kiwi-owned and operated rental car brands, the country’s dominant car make has indicated competitors can still access the hire pool.

Acquisition of Ezi Car Rental by Toyota Finance New Zealand (Toyota Financial Services) was completed on October 2. 

Toyota Financial Services will run Ezi as a separate business as it has with other acquisitions such as Cityhop.

In announcing the widely-rumoured acquisition, Toyota New Zealand commented that the importance of the rental car industry was the expansion of its value chain.

Toyota New Zealand chief executive officer Neeraj Lala says this lends an exciting opportunity for Toyota as the company transitions from an automotive to a mobility company.

He elaborated on this today, indicating intention isn’t to make it a Toyota product conduit.

Said Lala today: “We have made it very clear from the very beginning that we will operate Ezi Car Rental as an independent business.

“It is critical to us that we maintain a high degree of integrity and transparency to all rental companies that we have served from many decades.  From this perspective, nothing changes.”

TNZ was unwilling to say what percentage of the Ezi fleet comprised Toyota models. 

The company website shows its has all the usual passenger car favourites from the brand - Corolla, Yaris and C H-R included - but also has Haval, Mitsubishi, Kia product. 

Toyota Highlander is the crossover choice, but in heavy-duty sports utility, where Toyota Prado has been historically favoured by rental users, the choice is Mitsubishi Pajero. One-tonne utility favouritism seems to ignore Toyota Hilux for Mitsubishi Triton. The people carrier offer is Kia Carnival.

When asked if Ezi Car Rental would from now only only restrict to taking Toyotas, Lala was categorical.

“Ezi Car Rental will continue to engage with other OEMs (distributors) as they do now.”

TNZ has historically been the primary provider of product to fleets, including rental businesses, which might sometimes only take vehicles for short term usage before turning them over to resale.

In 2018 TNZ delivered Drive Happy, a programme whose intent was to swing the brand back to private buyers, in recognition that it had become too reliant on fleet business. 

In this week’s announcement, however, Lala made clear rentals were still important, commenting: “We remain committed to the rental car industry, as we have over the past three decades, and will continue to supply safe and reliable vehicles to all industry participants.”

While TNZ’s market leadership has remained firm since 2018,  its volume has dropped. 

Asked if the acquisition of Ezi Car Rental was intended to restore registrations counts to original health, Lala said volume fluctuations were “a function of many factors.”

“In the last three years Covid, and disruptions to logistics and production have been the major factors. 

“Through this period, we have had to direct volume to other channels as the tourism section had been decimated and now slowly making a recovery. 

“Our decisions are mostly market driven, and even through volume may have dropped last year, this year we are on an exceptional growth, while continuing to supply low volume to rental companies as our back orders continue to remain high, and our hybrid mix continues to grow. 

“The business is no longer as simple as deciding to provide a fixed amount to one channel as uncertainty through policy makers means we need to be more responsive than we have even been.”

In respect to any intent to bolster the availability of low-mileage, good condition used cars, Lala said it as no secret that TNZ stands alone in having its own used vehicle channel, Signature Class.

“Signature Class has been a brand in our market for more than two decades and will continue to provide Kiwis with the next best option to a brand-new Toyota. 

“Our used vehicle supply comes from a number of channels including rental returns, lease vehicles and also low emission hybrids from Japan. Ezi Car Rental vehicle returns, like any other rental company will continue for us.”

In its initial announcement, Lala emphasised that “oyota wants to become the mobility company for Kiwis by providing mobility solutions that are affordable and accessible.

“The acquisition of Ezi Car Rental allows us to focus on the opportunities in car usage as well as car ownership, and sits alongside our ownership of Cityhop, putting Toyota in a great position.

“Ezi puts us at 18 airports across the country, as well as an additional six locations, and through it’s significant vehicle fleet, enables us to provide mobility solutions to existing and new customers.”

“Toyota has been proud to serve the mobility needs of New Zealanders for the last 57 years and has been the market leader for the last 36 of these. This leadership position allows Toyota to help shape the future of the mobility landscape of New Zealand,” he says.

Car rental contributes around three to New Zealand’s gross domestic product, TNZ has estimated. 

Established in 1998, Ezi Car Rental is New Zealand’s one of the country’s largest Kiwi owned and operated rental car companies. It is spread across 24 locations and most airports including: Auckland, Blenheim, Christchurch, Dunedin, Gisborne, Hamilton, Hokitika, Invercargill, Napier, Nelson, New Plymouth, Palmerston North, Queenstown, Rotorua, Taupo, Tauranga, and Wellington.

Current Ezi chief executive Kevin Walker will remain in the business for a period to ensure a seamless leadership transition.