Hilux 'hammer time' - a hero is rising

EXCLUSIVE: An extra-hardened Hilux for Kiwis is set to be unveiled today.

Toyota New Zealand’s new boss Neeraj Lala has often spoken of his desire to deliver a Hilux equivalent of the performance utes rivals offer - will he deliver today?

PREPARE to meet a ‘hero’ Hilux that will not only overshadow the extra-hardened editions just released across the Tasman but will also prove tougher than any rival brands’ offers.

That’s the vow made by Toyota New Zealand’s chief executive at an introduction to the updated model line, which goes on sale the day after tomorrow. 

Journalists on a drive programme today that takes them from TNZ headquarters in Palmerston North to New Plymouth have been promised sights along the way will include a specially-fettled double cab model additional to the range already announced for public use.

Lala says the mystery truck set to be unveiled at midday is a hero model quite unlike any offered here before that will become a permanent fixture in the family.

He further vows: “It will be the best halo truck on the market at the moment.”

That’s quite a gauntlet throw down when one of those adversaries is the Ford Ranger Raptor. Is it possible for Toyota here to really create an equal when the major re-engineering process that went into Ford model obviously isn’t on the cards? Hard to believe. We’ll find out soon enough. Watch the MotoringNZ Facebook page for updates.

Certainly, it’s possible to monster up a Hilux. The confirmation of a new image-maker comes just a day after Toyota Australia, which claims to be the architect of all the major improvements that arrive with the 2020 mid-life update, has shown off its own specially-crafted hardcore editions.

The degree of commonality between the Hilux Rogue and Hilux Rugged X that our neighbours are taking and the machine heading to Kiwi customers will become more obvious by tonight. 

are Australia’s latest Rogue (left) and Rugged-X derivatives, revealed just yesterday, pointers to what Toyota NZ can achieve?

However, New Zealand would not be ill-served were we to pluck some of the content enjoyed across the Tasman.

They deliver new features including a motorised remote-control tray roller shutter for the Rogue and a steel front bumper with integrated LED light bar for the Rugged X, which as the name suggests is the more off-road-oriented of the pair. 

The latter also comes with heavy-duty front springs, a snorkel with reversible head, plus red-painted front and rear recovery points and heavy-duty rock rails (aka side steps).

There’s a unique sports bar at the back with multi-purpose attachment points, along with a moulded tub tray, tailgate protection and a heavy-duty rear bumper with an integrated step.

While Lala was coy about letting out too much info about the Kiwi model, he has has made clear before of his intent to use high visibility editions to polish the one-tonne model’s reputation and enhance sales.

Conceivably, these will be created as Australia’s have been. So, base vehicles are produced in Thailand and then kitted out with additional parts locally.

Logically that will happen in Thames where the former Toyota car plant has been repurposed as a refurbishment centre for used car stock under the Signature Class banner.

TNZ has already shown talent for dressing up the current generation Hilux – it has previously delivered versions with Toyota Racing Development guise and also created an extremely pumped one-off for the 2017 national Fieldays, called the Gladiator.

At the moment, the lineup is topped by this SR5 Cruiser doublecab, an almost $59,000 proposition. Raptor plays in the $70k zone … so, room for Toyota to move up.

Further, at a briefing last night, TNZ’s general manager of parts and service, Spencer Morris, outlined how popular factory accessories are with Hilux owners.

“No-one ever seems to buy a Hilux without ever wanting to accessorise it,” he said. 

The desire to add extras is good business; last year TNZ sold $30 million worth of bolt-ons. That taste is sure to be satisfied with the new model, with has 300 accessories available.

Regardless that it wants Hilux to achieve a market-leading profile, TNZ continues to downplay any desire to return the Hilux to achieve sector leadership, a title it held with ease for more than 20 years until the pesky Ranger turned up. 

Hilux has been class runner-up since 2016 and its popularity against the Ranger’s has seemed to widen most years.

It was well beaten last year, with 7126 registrations against Ranger’s 9483, and looks set to stay in the No.2 spot this year as well, barring a surprise upset.

Year to date, as at the end of August, the Toyota model has taken 3725 registrations against 4961 for the Ford in the same period. 

Toyota conceivably has a chance to get back on top next year, as that is when Ford ends sale of the current Ranger and swaps to a new model that becomes a co-share with Volkswagen. Ford is leading that project, so the new Amarok will be a Ranger in engineering though probably not in look.

The 2020 Hilux presents as a hefty mid-life refresh that will likely see it through until potential replacement, in perhaps 2023 or even later.

The latest enhancement delivers more equipment and more grunt and also improves the dynamics and resolves diesel a particulate filter issue that might have blackened the reputation of the mainstay 2.8-litre four-cylinder turbodiesel engine.

Development and evaluation of this engine is in latest state of tune means it now develops 150kW and up to 500Nm with a recalibrated six-speed electronic automatic transmission (and 420Nm with the six-speed manual).

That work, along with retuning of the suspension and steering, was conducted in Australia, in collaboration with teams from Japan and Thailand, as well as representatives from other markets.

The 2020 Hilux also has the usual full range of electronic braking and traction-control technologies, emergency stop signal (hazard lights), reversing camera (pick-ups), seven airbags, and seatbelt reminders for all seats. On double-cab variants, the rear seats have two top tether anchors and two ISOFIX points.

Downhill Assist Control is standard on all 4x4 SR5 variants and 4x4 automatic SR double cabs (including cab-chassis).

Toyota Safety Sense technologies in Hilux run to pre-collision system that can also detect pedestrians (day and night) and cyclist (daytime); high-speed active cruise control, and lane-departure alert that offers steering assist (via the brakes) to prevent unintended wandering into another lane. Road-sign assist can now recognise speed advisory signs. New for SR5 double and extra-cab pick-ups are front and four rear sonars to support parking. When the system detects objects, it alerts the driver with a buzzer and a message in the multi information display.

Toyota NZ has launched with 18 Hilux variants, evenly split in rear and four-wheel-drive.

The rear drive models start with a 2.7-litre Workmate single cab chassis with automatic at $28,990 and topping with a 2.8TD PreRunner SR5 Cruiser double cab automatic for $47,490. The cheapest have maintained price parity with their predecessors but others have increased in price by $1500.

The four-wheel-drive range is totally wed to the 2.8-litre and starts with a single cab chassis at $44,990 and tops with a $58,990 SR5 Cruiser double cab auto. All 4wd models are more expensive than their predecessors, the biggest increase being a $2500 hike for the SR5 auto.

Stay at home, buy a car

Latest monthly registration figures have surprised the industry, but it’s not expecting this boom to last.

RAV4 was a sales star for Toyota last month.

CASHED-up Covid-19 returnees look to be contributing to a spike in national new vehicle sales – with the July count almost at record level.

Motor Industry Association data for last month suggest registrations of 12,263 new vehicles; that’s 3.1 percent and 366 units better than the count for July of 2019 and also the second-strongest July ever recorded by the MIA.

The result was also in stark contrast to June, when sales of 11,514 vehicles were recorded. That count presented as a 17.5 percent on the same month of the previous year.  Yet June was in itself way better than April and May when, in the midst of the Covid-19 lockdown, 1039 and 8313 registrations were respectively recorded.

MIA chief executive David Crawford describes the July result as surprisingly strong, given the current worldwide economic conditions.

“Returning cashed-up Kiwis and alternative spending to international travel are thought to be behind the July result,” he says.

Market leader Toyota New Zealand says no-one could have anticipated the level of sales last month, given that it is usually a cooling off period in the wake of May and June, which have traditionally been big sales months.

Colorado is leading Holden’s sales runout

“The level of new orders across our entire range has surpassed our expectations,” says chief executive Neeraj Lala, adding that TNZ’s July result was the biggest retail month since the launch of the brand’s Drive Happy business model in April of 2018.

Crawford warns however that as the year progresses the economic outlook is for a continuing tightening market.

Despite July’s good result, the tough three month during the opening half of 2020 have meant that year to date the new vehicle market is down 24.8 percent or 21,694 vehicles.

July saw 8200 passenger vehicles and SUVs registered which was 3.5 percent up on July last year, while 4063 commercial vehicle registrations were up 2.3 percent.

The top three models for the month were the Toyota RAV4 SUV, followed by two utes, the Ford Ranger and Toyota Hilux.

Toyota remained the overall market leader with an 18 percent share, followed by Ford with 10 percent and Mitsubishi with eight percent.

Toyota also led passenger and SUV sales with a 17 percent share thanks to solid sales of the RAV4, Corolla and C-HR, followed by Kia on nine percent largely due to sales of Sportage and Seltos SUVs, and Mitsubishi with eight percent, thanks to continuing good sales of ASX and Outlander.

Ford regained the market lead in the commercial vehicle sector with a 22 percent share, resting on the imprint of its top-selling Ranger ute but also good sales of Transit van. Toyota was second on 20 percent thanks to Hilux and Hiace van, while soon-to-disappear Holden was third with a 10 percent share via sales of 381 Colorado utes.

Overall the top segments in July were dominated by SUVs. Top spot went to SUV Medium with a 22 percent share, followed by SUV compact on 19 percent. The Pick Up/Chassis 4x4 segment held 16 percent share.

Last month’s top 15

Toyota RAV4                 796 sales
Ford Ranger                  781
Toyota Hilux                 627
Mitsubishi Triton          383
Holden Colorado          381
Kia Sportage                 320
Mitsubishi ASX              265
Suzuki Swift                  251
Toyota Corolla              230
Nissan Navara               229
Mazda BT-50                227
Mazda CX-5                  222
Mitsubishi Outlander    220
Hyundai Tucson            206
Kia Seltos                     184

Land Cruiser update - change of face for change of pace

Is this the new look for Toyota’s off-road giant, the so-called 300-Series expected to be here soon?

IMAGES fully revealing the styling alterations arriving with the 2021 Toyota Land Cruiser support conjecture that the mechanical change coming with the ‘300 Series’ treatment will be more headline-making.

These photos have been unearthed by a specialist Australian off-roading web publication, Unsealed 4x4, and purport to show the updated vehicle awaiting shipment from a port in Japan.

Handily, the vehicle is parked alongside an example of the current 200-Series, which makes identifying the external design changes – to the front, at least - all the easier. If they’re not immediately apparent, the new car has a new grille, updated headlights and new front bumper that’s significantly deeper than the current model. It also scores new alloy wheels.

Exactly when Kiwis will be able to see the refresh in the metal for themselves is not clear. Toyota New Zealand has several product launches to enact this year, but anything for Land Cruiser has not been specifically mentioned. So far, the talk has been all about Yaris and updated Hilux.

However, it’s an open secret that significant change is coming for the long-running wagon and that the big development will be the introduction of a twin turbo V6 petrol mild hybrid powertrain. Whether this unit will sit alongside, or completely replace, the current 4.5 litre V8 turbodiesel is still subject to much discussion. Toyota is remaining quiet.

The model that media imagine will be called ‘300 Series’ has been a long-time coming. It’s strongly claimed Toyota had 300-Series prototypes in Australia being tested as long ago as 2015. The 200 has been around for an astoundingly long period: 2020 is its 13th year of production. The preceding ‘passenger’ Land Cruiser models were in build for eight (80 Series) and nine (100 Series) years respectively.

Why drop the V8? Mainly, it seems, because of a wider brand policy. For sure, the current engine struggles to meet economy and the latest emissions standards enforced in some big passenger markets – but whether that really matters to land Cruiser is moot. The biggest markets for this model are the Middle East, where fuel is cheap and no one gives a jot about exhaust counts, and Australia; another country where the car is comfortably accepted in its current form. To be fair, NZ also doesn’t have any regulations that the vehicle would trip over.

However, Toyota Japan has itself committed to offering a fully electric or electric hybrid version of every model in its range by 2025, so conceivably that in itself is enough to do it for Land Cruiser. Also, the developments it gets are likely to be applied to vehicles like the Prado, the Fortuner and the Hiluix. Indeed, a hybrid Hilux has been mentioned repeatedly as a future product. 

While its specs have remained closely guarded secret, the ‘300’s’ engine is expected to be based on a large-capacity six-cylinder turbocharged petrol engine, potentially a version of the 3.6-litre used by Lexus product, augmented with an electric motor and a battery pack. Outputs estimated in the region of 260kW and 490Nm. When news if this drivetrain first broke – via a Japanese car publication, ‘Best Car’ – it was suggested the engine would drive through a constantly variable transmission.

The Lexus version of this powertrain is not turbocharged and goes into the LS large sedan and LC flagship coupe. In those vehicles it produces 220kW at 6600rpm and 348Nm at 4900rpm, and the electric hybrid system produces 132kW and 300Nm, for a combined power output of 264kW (with an estimated combined torque of 500Nm). In the LS, it makes 310kW and 600Nm, a torque output that is closer to that from the current 200-Series engine, which packs a claimed 650Nm at 1600-2800rpm and 200kW at 3600rpm.

The powertrain demands a stepped CVT in place of the current edition’s six-speed traditional automatic, to improve fuel consumption to around 9.4 litres per 100km and reduce emissions.

Toyota is the pioneer of hybrids, having launched the first mass-produced production hybrid car, the Prius, back in 1997, and its hybrid integration and much higher now.

The LC200’s stocks have fallen in recent years as the market migrates away from full-sized, old-school ladder frame genuinely tough all-terrain models and toward softer, more street-wise sports utilities.

Even so, there has been enough of a core following to sustain a four variant local lineup, starting with a $115,900 VX and topping with a $129,990 VX Limited, and convincing the traditional buyer set that this is a better alternate to the current offering could be a challenge.

Land Cruiser 200-Series maintains especially high residuals on strength of its toughness and as a good choice for towing super-sized caravans and boats; the fan base will be eager to know if that talent remains intact. It also has a very comprehensive off-roading technology pack. It’s hard to imagine this being eroded though surely having a CVT in the package will raise some interesting challenges.

There has been talk about the vehicle going to a new platform; the vehicle in the images apparently having the same dimension (and, aside from the nose, body shape) as the 200-Series suggests that is not the case. But, for the record, overseas’ chat has been about it taking a body-on-frame version of the TNGA (for Toyota New Global Architecture) underpinning, known as TNGA-CV.

The interior is said to be in for a huge revamp, with leather, comfort and luxury levels that were previously the preserve of a Lexus.

Best Car said it has a larger, up-to-date 8.0-inch infotainment system, with Apple CarPlay and Android Auto, and additions to Toyota Safety Sense, which will come with a full suite of driving assists such as adaptive cruise control, lane-keeping assist, day and night-time pedestrian detection and more.

Rebirthed RAV4 not for Suzuki NZ

A product share between Toyota and Suzuki might well affect their NZ distributors, but in an indirect way.

Looks familiar? A new nose and a change of badge turns the RAV4 into a Suzuki Across

DEVELOPMENTS within the Suzuki model range triggered by its battle to meet tightened emissions regulations imminent in Europe are good news for the local distributor – and perhaps for a rival, as well.

The Jimny small sports utility that has become so popular here as to be subject to a big waiting list and a Suzuki by arrangement with Toyota, the Across, have become central figures as the brand works to achieve a range-wide Co2 count it must meet in order to keep trading in the European Union after the end of this year. 

It might come as a relief to Toyota New Zealand that the Across is unlikely to avail locally: The last thing it might need is a competitor fronting with a lightly-revised edition of one of its most popular cars.

It’s worse than that, actually. Not only is the Across a RAV4 with nothing more than cosmetic change – it’s a variant TNZ has yet to secure, yet has big hopes for nonetheless.

The longstanding, if relatively low-key product-sharing relationship Suzuki enjoys with Toyota has recently morphed into a deal to collaborate on electrified vehicles.

To meet the demands of the European emissions situation, Suzuki has been allowed access to the RAV4 Prime, which has a plug-in recharging capability that’s far more Green-minded than the mild hybrid RAV4 most-favoured by Kiwis at the moment.

With a 2.5-litre four-cylinder petrol engine, a 18.1kWh lithium-ion battery pack and an electric motor mounted on each axle, the Prime’s drivetrain hits two targets.

First, there’s the optimal 75kms’ all-electric range. That’s significantly superior to that from Toyota’s only PHEV in circulation here at the moment, the Prius Prime, and also trounces that cited for a probable rival, Mitsubishi’s Outlander PHEV.

On top of this, with cited outputs of 134kW and 270Nm, this RAV4 is also said to be far sportier to drive than any current edition offered in our market.

All good portents for TNZ, which has been dropping hints about the potential for the Prime coming into its lineup, probably in 2021.

Suzuki NZ boss Tom Peck is relatively relaxed about there being little likelihood of Across being signed off for this part of the world. And even if that changed, he thinks it would be unlikely the car would become available “at a price the RAV4 sells for.

“Ultimately, Suzuki and Toyota do have a product tie-up that is bigger than the local companies … but there are regional agreements. I don’t think those Toyotas (in addition to RAV4 Prime, there’s a hybrid Corolla wagon) will be offered to NZ (as Suzukis).” 

In addition to what’s going in Europe and the United Kingdom, Toyota is using rebadged Suzukis to gain entry to India, where the small car expert is already a well-established kingpin, with Maruti.

Toyota helping Suzuki achieve CO2 averages with the EU emissions regs can go so far, however, and there’s already been a decision that could become beneficial to Suzuki NZ.

UK dealer supply of the Jimny small SUV will cease in the coming months, as the CO2 counts from its 1.5-litre petrol engine are too problematic to address. 

Bad news for English fans of the baby off-roader will likely be a good turn for Kiwi enthusiasts as almost certainly the big issue of supply – so constrained that at the moment the waiting list for Kiwis stretches almost nine months – could well be alleviated, Peck believes.

“We have been getting better allocations recently but that’s been more to do with Covid-19 than what’s going on in Europe; we’re fortunate in being among the countries that have been able to take and sell the cars. But we still have more than 350 confirmed orders awaiting delivery.” 

The distributor generally receives 40 units per month from the factory – nowhere near enough to satisfy demand. This latest turnup could free up more volume, he hopes.

“If that happens if shouldn’t take us too long to catch up (with the order base).”

Suzuki has also been talking about creating a second production base, also in Japan, to alleviate the current factory which has been operating at maximum capacity since the car’s release, but the coronavirus crisis seems to have sidetracked that development just at the moment, he says.

However, it works out, Peck is utterly confident the car’s inability to sustain in Europe won’t cause Suzuki to rethink having it in their line-up.

“Not at all. There is huge demand for Jimny outside of Europe. It will definitely continue.”

‘Toyota was always the only company I wanted to work for’

His family came to New Zealand for a new life – as incoming CEO of Toyota New Zealand, Neeraj Lala has a similar mission.

FROM JULY 1 Toyota New Zealand has a new chief executive –  Neeraj Lala, promoted from the position of chief operating officer, is just the fifth local at the helm in 50 years.

The only son of parents who emigrated from India to a new life in Wellington, Lala came to the country’s largest new passenger vehicle distributor in 1998, virtually directly from the capital’s Victoria University, where he’d gained a Bachelor of Commerce, taking up a role in the IT department.

Working for the brand, then based in Johnsonville and so an easy commute from the family home, was a dream come true for this lifelong car nut inspired, he acknowledges, by the ‘Welcome to Our World’ ad campaign, he imagined he might be there for a few years and then head overseas. 

It didn’t work out that way. Over the years, he has worked in most areas of the Toyota business including Marketing, New Vehicles, Product Planning, IT and Used Vehicles. In 2014, he completed an Executive Master of Business Administration (MBA), finishing top in his class with Distinction from Massey University.
 
Since returning in 2018 from a three-year Executive Leadership programme with Toyota Motor Sales in the United States, Neeraj has been instrumental in driving transformational change at Toyota. The 45-year-old and his wife, Sandy, have also raised two daughters – now teenagers - and a younger son.

We sat down with the new boss to talk about his life and career path, his thoughts about where the car business is heading … and a little about his cars and his family.

MotoringNZ: What does it personally mean to have achieved the role of chief executive officer of the country’s largest new motor vehicle distributor?

Neeraj Lala: “As something I have worked long and hard for, for a long time, it means a huge amount to me. And to my family. We’ve all made quite big sacrifices. 

“It’s quite a humbling privilege to be given an opportunity to continue a really strong legacy built up by (retiring CEO) Alistair Davis, and Bob Field before him.”

Care to guess what this kid grew up to do?

MotoringNZ: You arrived at Toyota New Zealand in 1998 pretty much fresh from university and went straight into what was then a relatively fledgling IT department – back when this thing called the internet was still something of a foreign territory for even big brands. Did you see TNZ as the life-long home it’s become or was this supposed to be a transition toward a different kind of career? 

Lala: “I’ve always been a car nut and when I was a university student I wanted to work for Toyota, having been seduced by the ‘Welcome to Our World’ campaign. Toyota was always the only company I wanted to work for.

“I never applied for a job with any other company. I worked for the Radio Network for seven or eight months, but it was just a transition job while I was waiting for Toyota to reply to my application.

 “When I got the job I wasn’t aware the company was transitioning from Wellington.

“It was a bit of a shock when my wife and I moved to Palmerston North … we didn’t see Palmerston North as a long-term residence. We initially had the view we might stay here for maybe two years and join our friends, in the United Kingdom or in Australia. 

“But two years turned into four, into six, into 10 ….”

MotoringNZ: You’re from a humble family background; hardworking parents, brought up in a close-knit, proud community. Life lessons tend to influence; what values instilled from your early life that remain important to you? Also, does your rise give you thought to ponder about diversity in the workplace?

Lala: “Mum and dad, who still live in Wellington, came to New Zealand from India when they were teenagers. They migrated for a lot of reasons, including of course to give their kids a better life.

“My three older sisters – who now live in Auckland - and I were all born in Wellington.

“We were also of course quite heavily involved in the Indian community; it was really important to my parents and all of us. It’s a really tight-knit community and they have exceptionally high standards and work to keep the culture alive, though with every new generation there are always little changes.

“My dad wanted his kids to have their own businesses. He told me before I started at Toyota ‘a Japanese car company will never take an Indian seriously.’ And that was because his generation was exposed to a lot of racism. 

“That of course is a very traditional mindset but it is certainly not anything I have experienced or been exposed to. 

“When I was a kid I never saw my Maori mates, my Samoan mates, my European mates or my Chilean mates as being any different to me. In the playground we were one.

“It’s the same at work. If we had a cultural festival at Toyota New Zealand, I think we would have most cultures featuring.

“Even though diversity in the workplace is topical, I believe our process – not through intention or design – has just naturally attracted the best people, and the best people just happen to have a multitude of cultures and interests in their backgrounds. I think that is what makes this place pretty special.”

MotoringNZ: Toyota in New Zealand is as it is in Japan; a powerhouse. How does this ship sail – is strict adherence to head office corporate responsibilities and ideals expected; what allowance do you have to imprint your own aspirations? 

Lala: “One of the things that excited me about coming back from the US is the autonomy and the flexibility that TMC (Toyota Motor Corporation, Japan) provide TNZ with.

“In the US we had a Japanese co-ordinator in almost every division. But TMC see New Zealand as a dojo – an innovation hub – to trial new business processes and opportunities.

“That’s why we have had really strong interest and support for the ‘Drive Happy’ project. It’s a market where we can test and trail exciting new innovations and business models and then be an innovation hub, via TMC, to other distributors around the world.”

MotoringNZ: This is a carefully planned handover – it was clear more than a year ago that you were to be the next on the throne, as it were. All the same, history seems to conspire to ensure these changeovers occur during periods of challenge: Your predecessor assumed the job at the height of the 2008 global financial crisis, you are taking the reins during Covid-19 – does that add to the weight of responsibility.

Lala: “No …. 

 “ … it doesn’t.

“I have had a mentor (based in the US, Dave Oldfield), for 12 years, who I meet with and engage with, and I’ve had Alistair mentor me himself for more than 15 years.

“I knew before I went to the States that this (CEO role) was a likely opportunity, given that Alistair had a done a similar secondment. He mentioned to me early in my career that, because we’re such a small company, the cost of sending somebody overseas is such that you need to make sure than whoever you send is likely to be a successor. That, and when he asked me to undertake my MBA, were signals.

“So, anyway, it’s been a really long tail. When Covid hit I guess those 10 plus years of planning and preparation … well, I won’t say it was by any stretch of the imagination easy (to operate TNZ during lockdown) but the outputs of the training, the mentoring and the programming  … I’m left feeling we have navigated it extremely well. 

“The culture of our company has gone through the roof. The engagement has been unbelievable. And our start-up has been nothing short of exceptional.”

“So, I certainly don’t feel it as a burden. I feel it as an exciting opportunity.”

MotoringNZ: So come 8am, July 1, you’re in the big chair – what’s Job One and what are the immediate challenges facing Toyota NZ that you feel compelled to address?

 Lala: “I feel as there is an opportunity for us to really strengthen the core of our business, to serve our customers better. I know that may sound like a wishy-washy statement, but actually I think a one or two percent increase in every area of our business will give us a huge advantage, not just over out competition, but also to deliver our customers a far better experience.

“So the first job on day one is strengthening our core in areas of operational efficiency.”

MotoringNZ: It’s often said that when a brand is dominant, the only way to go is down – Toyota market share remains at a record high, but volume has diminished in recent years and Lexus has always been a quiet premium circle achiever. How confident are you that Toyota can remain the country’s most-loved car brand and what will keep it there?

Lala: “Actually, our market share has been as high as 24 percent so the fact that we’re currently at 20 percent tells me it’s low.

“I’m not so concerned about volume, because volume in the past has meant we’ve done things that we probably shouldn’t have. Did we over-invest in some channels over others? Possibly. But of course, it was done for a reason of feeding our value chain. I think there’s opportunities for us to grow our market share quite substantially, particularly with the new products we have coming over the next 18 months.

“What will keep us at number one is probably the experience at our stores around the country.

The Gazoo fan club starts here …

MotoringNZ: Your passion is for performance is obvious – your most recent daily drive cars have been a Lexus GS F and a Toyota Supra, you returned from a three-year stint with Toyota US with a Corvette ZO6 and you are a huge Gazoo Racing fan. Meantime, your predecessor, Alistair, is perhaps setting a different kind of standard … he drives a Lexus hybrid. Do you follow in his tyre tracks, keep up with the power play or find a happy medium.

Lala: (Laughing) “The first thing I’d say is Alistair’s a huge car guy and a real motorsport nut. You just look in his office; it’s ful of motorsport stuff. And our motorsport programme would not have got off the ground if it wasn’t for Alistair.

“So, while he is a tree-hugger, he’s a tree-hugger car enthusiast! He’s wanted to create his brand around sustainable and low emissions.

“My twist on that is that I see low emissions sustainable product coming though that also deliver the power and performance that excites me. If you look at the plug-in RAV4, the performance makes it a car I would drive.

“Yes, I’m a car guy. I just love cars.” 

MotoringNZ: You’ve often spoken about how Toyota is in transition from being a traditional automaker to a mobility company focused on future technologies – it’s a simple statement describing a journey of huge, probably complex, change. What are the implications for our country?

Lala: “Toyota is in the strongest position to deliver mobility in New Zealand. I say that with real confidence because I truly believe we have the best selection of sustainable products and, more importantly, I think we have the best coverage through the country in terms of accessibility.

“This is all about transitioning customers from (vehicle) ownership, to (vehicle) usage to (vehicle) access. The implications to our country are going to be immense. For cities like Auckland that struggle with congestion, it’s hopefully going to provide some logistics efficiency.

“I think from a personal consumer perspective, the implications here are going to be around how privacy laws evolve. Because, for effective car share, you need to have a transport system that gives you ‘first kilometre’, ‘last kilometre’ transport, as well as your core journey.

“For that to happen, it needs to be inter-modal. For something to be inter-modal, you need to have some data-sharing across different platforms. That has implications for our country but I think we are evolving and moving toward this.

“Contact tracing and social distancing … this Covid crisis, if anything, has widened out lenses to the fact of the likelihood of being tracked. And people are seeing the benefits from a health perspective.

“From a transport perspective, if a system could tell you how you could get off a bus at this time, and onto a train at that time and then into a taxi at another time … well, then the convenience and ease of mobility is what is going to make people more open to the fact that data is going to be shared.

“What implications will that have for our market? Well, it’s probably going to radically change the structure. We are a market of 30 percent private sales and 70 percent fleet or business. Under an effective car share, there are big question marks of leasing and rental, on structures of our current industry that could dramatically change. Which I think is quite exciting.” 

MotoringNZ: Toyota is dominant in hybrids and the sales imprint here is impressive, yet EVs are rising and we’ve all that Green-generated electricity to feed them. Toyota looks more like a follower than a leader with partial and total plug-in vehicles. How long before it and Lexus here have a full EV 

Lala: We’ll have an EV here within the next 18 to 24 months. Just in time for demand.

MotoringNZ: Also, there are a couple of hydrogen fuel cell Mirais in the company garage, apparently sitting idle. NZ also seems keen to get into the hydrogen game; there’s already talk of Palmerston North, your home city, being a ‘hydrogen hub’ – a fuelling centre for medium to heavy transport using this fuel. Can we see your brand hit that road?

Lala: “The hydrogen discussion in NZ is really exciting at the moment. We’ve already had conversations around promoting the energy as a sustainable and viable alternative. But I don’t believe this is something that can be done by just one brand. I see non-traditional alliances forming, that might not have ever been considered. We’re in conversations with the right people for that to happen.

“Does that mean we would support a hydrogen hub in Palemrston North? Maybe. I thinmk it would be a case of seeing what evolves and how it evolves.

New Mirai is available to New Zealand … all we need is an infrastructure to support Toyota’s hydrogen fuel cell technology.

“As for Mirai? Well there discussions at the moment about whether we will introduce the new Mirai, which was revealed last year, into New Zealand and how we would do that. It is certainly available to us and we are certainly excited about introducing it. But you cannot do that without infrastructure.

“So we have a few ideas with some strategic partners – other car companies and other organisations – about what would the introduction of hydrogen mobility look like.”

MotoringNZ: The work-life balance at corporate level can be challenging. You’re a family guy, living in a typical Kiwi house in a typical Kiwi suburb – you involve in your childrens’ recreational endeavours (No.1 spanner/supporter on your son’s racing kart) and you’ve found a new hobby in photography. Do you fear any of this having to be shelved going forward?

Lala: “I do love getting out and taking landscape photos but haven’t picked my camera up for a long time because my son’s karting has kept me busy.

“My priority is to Toyota and my family and, of course, it’s been quite tough. My daughters and my wife really enjoyed living in the States … my girls didn’t want to go but they’ve struggled with the transition back, as teenagers sometimes do.

“I’m really grateful I have Sandy holding things together and it’s just a case of holding everything in balance. I’ve empowered my management team and my executive team to lead and drive some of the stuff.

“The reality is that I’ll be away a lot so I’m really lucky to have the support of a good family.”

Richer outfitted Fortuner coming

Engine upgrades, improved towing capacity and more equipment for Toyota’s ‘other’ medium SUV.

THE diesel ‘alternate’ to the petrol-wed Highlander is about to be upgraded for New Zealander followers 

Revisions to the Fortuner, available here since 2015, largely follow those just announced for the HiLux.

The changes are obvious when spotted – though sighting a Fortuner has tended to be a challenge. With 54 registered in its year of launch, in 2015, 534 in 2106 – its full year – when 87 were rentals, 440 (25 rental) in 2017, 465 (one rental) in 2018 and 816 (of which 542 were rental) last year, plus 20 this year to date, it’s been a quiet achiever for Toyota New Zealand.

No matter. The Palmerston North-based distributor is sticking by its competitor to the Mitsubishi Pajero Sport, Ford Everest and soon-to-go Holden Trailblazer and Isuzu MU-X.

Moreover, it is likely renew marketing focus on Fortuner because the model is just about to enter the market in an updated form that delivers a more sophisticated look, improved performance and better tech.

The detail will sound familiar, because unsurprisingly it’s pretty much the same stuff that will come to the 2021 HiLux, revealed last week.

TNZ could have, in fact, chosen to discuss Fortuner concurrently with the HiLux presentation, but chose to keep them separate to keep the information flow tidier. So Fortuner’s story was held over to this week.

So, what’s in store? The current two model grades, GXL and Limited, seem set to continue to be offered and the mid-life update will mirror most of the changes made to the HiLux, including its upgraded 2.8-litre four-cylinder turbo-diesel.

Pricing and full spec are unlikely to come with this week’s announcement; in all probability, TNZ will follow normal process and hold these details until much closer to launch, which will surely tie to when HiLux appears.

On that matter, TNZ suggests “late year.” Surely we won’t be far behind Australia, which is taking both ute and wagon in August? Presently Fortuner GXL is a $55,490 ask and Limited sites $3000 above that.

Anyway, the images and some detail is already out, thanks to our neighbour.

Access to their press material suggests that as well as the sophisticated new exterior design, characterised by its sleek multi-LED headlight clusters, equipment levels have increased with the fitment of Apple CarPlay and Android Auto (wired, not wireless) as part of a significant improvement to the infotainment system, which also takes a new touch screen, enlarged to eight inches (so, up one inch).

This is as much as Toyota wants to say about the interior, but suggestion is that it will get a fancier cabin fit-out than the updated HiLux ute.

The engine upgrade is significant. Matched as standard to an automatic transmission, the tweaked engine pumps out significantly more power and torque – up from 130kW/450Nm to 150kW/500Nm – thanks to “new and uprated components”.

Fuel consumption has also been reduced courtesy of improved cooling, says Toyota, which claims a 17 percent efficiency increase in the urban/city cycle, which will see combined consumption reduce from the current 8.6L/100km.

The boost in power also sees the Toyota Fortuner’s towing capacity increase from 2800kg to 3100kg, and is likely to be accompanied by a fix for the diesel particulate filter problem .

The sales pitch? Well, it used to be that TNZ marketed Fortuner as a a "medium rugged" SUV, pitching it as a less expensive alternative to the Land Cruiser Prado (also "medium rugged") or a more hard-core wagon than the passenger-car-based Highlander crossover, which it described as "medium soft". There’s no logical reason to divest from that strategy, not least given that Highlander from next year will drop its V6 in favour of a smaller capacity four-cylinder petrol with hybrid assist.