The swift curtailment of rental car business, where it dominated, certainly affected the country’s biggest seller of new cars and light commercial vehicles.

IMAGE_Toyota New Zealand's Palmerston North head office.jpg

MARKET leader Toyota New Zealand has acknowledged a tough coronavirus-smashed 2020 market condition delivered a sobering 31 percent fall in annual volume, though it sees increased private consumer interest during this period as a positive.

In comment today, the Palmerston North-centred distributor says the depleted return was mostly due to the impacts of the international coronavirus calamity on both rental fleet sales due to the immediate halt of international tourism through the closure of borders, and the local economy.

TNZ has not shared exactly how many car and light and commercial vehicle registrations it achieved in 2020 and that figure might not come out until a full data set of registrations is released by Government’s Land Transport agency next week.

However a 31 percent fall is likely the lowest it has achieved in years – though not a market position-altering knockout, in that the make maintained market leadership for a 32nd consecutive year.

It says it achieved an 18.1 percent share of all new passenger and commercial registrations in 2020; which it says represents a 1.9 percent drop on the 2019 tally.

Last year TNZ claimed 31026 passenger and light commercial registrations.

A positive from the year is greater engagement with private buyers – an aspiration that TNZ has chased since the introduction of its ‘Drive Happy’ retail process in 2018 - which fuelled a rise in new vehicle sales, particularly hybrids, toward the end of 2020. That factor meant that, were lost rental volume to be excluded, TNZ’s market share had improved by 2.4 percent.

Chief Executive Officer Neeraj Lala sees that as being a great result.

His office says TNZ private market share was up 2.6 percent compared to 2019 at the end of November.TNZ says the product range it offers now delivers more to appeal to private buyers.

“Toyota has made a real effort over the past few years to inject fun back into the range which is resonating with our customers.”

It also credits wider availability of hybrid powertrains across more models, the next recipient being the new Highlander out soon, though TNZ acknowledged recently in might yet maintain a pure V6 in that family, thus backtracking on an earlier vow to deliver the big SUV in petrol-electric form alone.

Hybrid drivetrains, despite battery involvement, are not considered to qualify as electric systems as they lack facility for external power replenishment yet they still offer a positive in modest respite in emissions and economy. Five Toyota models configure with hybrid. Toyota has one car that holds electric vehicle status, this being the Prius Prime, which has plug-in replenishment capability but also runs a petrol engine. Toyota has a full electric car under development and premium offshoot Lexus will deliver a battery-compelled edition of its NX compact crossover to NZ this year.

As is, TNZ’s volume of hybrids is vastly greater than the combined sales of all pure electric vehicles available in NZ and Lala says demand remains strong.

In the year to the end of December, hybrids accounted for 59 percent of Toyota passenger cars sold. SUV hybrid sales were the same ratio within the soft-roader category.

The big seller is the RAV4 Hybrid; of the 5346 RAV4s sold during the year, 3830 were hybrids. The next shipment of 574 vehicles is already sold.

However, like many industry performers, the demand has outstripped ability to supply. Constrained production lines and delays in provision of vital components are hitting all major car makers, Toyota included.

TNZ presently has more than 5700 customer orders waiting to be filled and most are hybrid models.

“If there is a challenge with hybrid sales it is securing enough supply for New Zealand, as there is a global demand for hybrid cars and SUVs, despite the economic impact of COVID-19,” Lala says.

In other news, TNZ has appointed a long-time senior management figure, Steve Prangnell, to general manager of new vehicle sales.