Electric Hilux possible, electric world …?

 Batteries could be included for a New Zealand favourite but don’t imagine every future Toyota will go that way, the brand says.

bz4x previews toyota’s first fully electric car, out next year. But it doesn’t mean every future Toyota will power play this way.

TOYOTA has fired up focus on the potential for a New Zealand market icon, the Hilux, being battery-driven yet also suggested a fully electric driving world is improbable.

The matters have been addressed by Toyota Australia, which has acknowledged that the push to add hybrid or pure electric power to all models could eventually see the introduction of a battery-compelled version of the top-selling one-tonne ute. 

Additionally, however, the distributor has spoken stridently in suggesting not every vehicle on the planet can ever switch to pure electric power, primarily because this transition would simply shift the problem from tailpipes to power stations.

This viewpoint has spurred Toyota New Zealand to say that it’s a reminder that each country has its own challenges and that our neighbour’s are different to our own.

Says TNZ chief executive Neeraj Lala: “The challenge for Australia and TMCA (Toyota Motor Corporation Australia) is that in transitioning to BEV a large proportion of their electricity is generated by fossil fuels hence the commentary on shifting the problem.”

In comment on Tuesday, a day after the home office of the world’s biggest car maker unveiled the pure-electric BZ4X, a RAV4-sized and styled model that has been confirmed for New Zealand availability from 2022, the Australian operation’s sales and marketing boss contended: “Despite this week’s focus on (pure-electric cars), we cannot achieve carbon neutrality simply by turning all our cars into (pure-electric vehicles).”

The statement from Sean Hanley is potentially a litmus paper to electric vehicle supporters who hold belief there is no reason why New Zealand should not stop the sale of new fossil fuelled vehicles by 2035, as proposed by a Government study, and wholly embrace a mains-fed future.

On this, Lala says: “That is an issue at the source of electricity generation for Australia (albeit it a far smaller issue here in NZ) … we have our own challenges and need to continue to work with the Government and relevant industries to continue our transition to a low emission vehicle fleet in NZ.”

The new car market leader concurs with a view also put by the Australians – namely, that the world of tomorrow will be better served by a choice of future vehicle technologies.

To that end, Toyota says over the next decade it will expand its choice of technology – beyond petrol and diesel vehicles – by introducing more hybrid, plug-in hybrid, pure-electric, and hydrogen models.

A fully electric Hilux? Never say never, apparently.

Lala offered that because each country has its own unique challenges in considering models in their market including powertrains and electrification “…the Toyota global view has been to not focus on just one but multiple powertrain options so countries and customers can have a variety of low emission options that suit them.

“As the technologies advance, there is a likelihood that electrified models will span across our whole model range (this is our longer term objective) and if these are developed and introduced as HEV, PHEV or BEV has a dependency on how mature the market is and what benefits the power train can offer the customers in that market.”

While not responding directly to the concept of a battery Hilux, he offered this view. “ … NZ customers want more rugged utes that can go off-road, tow and carry loads so a BEV option would need the support of charging infrastructure in both urban and rural/remote locations to be practical for our customers.” 

The idea of an electric ute fits in with contention from Toyota’s agency in the United States, which this week let slip that pick-up trucks it sells will take this form of propulsion.

The timing is anyone’s guess. Having previously said it wanted to have battery-influenced versions of every important car it makes in circulation by 2025, Toyota Japan this week pushed out that timeframe to 2030.

Also, while Toyota has said a Hilux EV could happen, it also says that it might be a decade before we see it. In the interim, then, a hybrid option could still be in the more immediate future.

The thought out of Australia about the purely battery-fed Hilux has come with a caveat about the need for such a vehicle to be up to surviving Australia’s tough conditions.

However, when asked about the imminent arrival of electric versions of the Tesla Cybertruck, Ford F-150 and Chevrolet Silverado in the US – and the possibility of a Toyota rival – Toyota Australia executives reportedly said an electric Hilux could not be ruled out.

The CarAdvice website has quoted the senior product planner for Toyota Australia, Rod Ferguson, as saying: “We have not ruled out a pure-electric Hilux” and, though such a vehicle would “definitely be a challenge, but until we get to point where we say we can’t do it, we will explore every option”. 

Advancements in battery systems could one day make an electric heavy-duty ute possible, Ferguson said.

bz4x is RAV4-sized, but will it compete directly with the popular sports utility?

“We need to consider the packaging and changing platforms (vehicle architecture). We haven’t ruled it out.”

In respect to the idea of an utterly electric driving world, Toyota Australia’s executives are not so sure.

According to Hanley: “One-quarter of the world’s CO2 emissions today come from electricity generation. Even by 2040, more than half the world’s electricity is expected to be generated by fossil fuels.”

“Therefore, if all cars were to become (pure-electric vehicles), the demand for electricity would increase and carbon neutrality could be a long way off.

“We simply cannot achieve carbon neutrality by only producing electric vehicles,” said Hanley, especially as “more than half the electricity generated by 2040 will still be powered by fossil fuels. 

“In the end, the main driver of electrification (of vehicles) will be … the consumer,” said Hanley, adding that Australians have a “broad use” of vehicles and a vast range of demands, from rural and city use to mining and off-road driving.

“Our vehicles must be fit for purpose. There’s no point bringing a car to market if it can’t do what consumers want.”

Toyota's full electric a 2022 release here

Shanghai concept is a pointer to a breakthrough model set to sell alongside a swathe of hybrids.

A PRODUCTION variant of a fully electric Toyota concept revealed in China today will release in New Zealand next year, with sister models to follow.

The BZ4X styling study Toyota Japan has revealed at the Shanghai Motor Show has been described as being a “hero” of a global electrification future that will deliver 70 models globally by 2025. 

It’s similar in shape and size to the RAV4 crossover but lower, with a longer wheelbase and sharper styling. From the outside, the concept captures the ethos of bold, futuristic EV looks; the interior … erm, less so. A large touchscreen extends up out of the centre console, which has a rotary shifter placed in the middle and storage underneath.

Shorthand for ‘Beyond Zero’, a catchphrase chosen to highlight the corporate direction, BZ will present as a sub-group of seven fully electric models, with the BZ4X first into production.

Toyota hasn't said anything about battery size or range for this model, the first to use the new e-TNGA electric car platform, which will also underpin product from Subaru, which co-funded and co-engineered the underpinning.

The showroom-ready example is not expected to be much different to the concept, save for perhaps for losing some exotic details. An orthodox steering wheel will likely replace the yoke-style item on the styling study, regardless that Tesla has introduced the latter for its latest version of the Model 3.

TNZ chief executive Neeraj Lala says NZ will take these cars, and he expects them to be well received, though he has also expressed thought it might be some time before these full electrics outsell the hybrid choices it already has here in abundance and will add to.

Comment released today also leaves impression any expectation of the wholly electric fare being priced for mass appeal is probably mis-judged.

With today’s announcements, Toyota has taken to label everything it produces that has a battery-involved impetus as being  an ‘electrification vehicle.’

 This self-concocted descriptive seems to have been created to leave impression its hybrids are of similar calibre as electric cars, though by definition they are not, as an express qualification for electric status vis an ability to enable a mains-replenishment ability.

However, the new label certainly enforces that Japan’s No.1 is the world’s biggest player in electric-assisted drivetrain production, with more hybrids, plug-in hybrids, electric vehicles and fuel cell vehicles to come. Interestingly, according to Toyota US (but not mentioned by Toyota NZ) this reach will include the pickup truck line-up in the near future, including hybrid and BEV powertrains. Does Hilux qualify as a ‘pickup’, or do they mean the larger Tundra?

Lala says Beyond Zero means a variety of options for Kiwis.  

“The Beyond Zero (BZ) range will be introduced in New Zealand to strengthen our range of electrified vehicles and achieve affordable mobility for all.”

“As a company committed to mobility for all, our priority is to offer affordable vehicles that meet the needs of all New Zealanders. This means a range of powertrain options to suit consumer needs,” says Lala.  
 
“Like hybrid technology 30 years ago, adoption and affordability will take some time. This will allow time for infrastructure, technical training and servicing to prepare itself for accelerated demand and lower cost alternatives.”
 
“BEVs will eventually become a sustainable means of mobility. However, it will take time as the energy mix, battery technology and infrastructure are still being developed,” Lala says.

Currently the cheapest full electric car offered in NZ is an MG, at just under $50,000. Expectation that Toyota’s status as the world’s most largest car producer will allow it to significantly reduce that premium seems overly optimistic, however.

Says Lala in respect to this: “As there is significant research and development cost recovery on new technology, this first Toyota BEV for New Zealand will not be an affordable BEV for all Kiwi households and businesses. 

“Our focus will also be on how we can transition BZ4X into the used vehicle market as quickly as possible so all Kiwis can become familiar and enjoy this new technology in an affordable manner. This is why we see affordable hybrids and plug-in hybrids as transitional technology and a bridge to a sustainable, low emissions future.

“Adding our first battery electric vehicle (BEV) to our range, continues our journey of offering powertrain choices for customers while helping New Zealand realise a zero-carbon future.”
 
“Toyota has been vocal in our support of the New Zealand Government as we transition to a low emissions economy and we’re excited at the prospect of bringing Toyota’s first pure battery electric car to New Zealand next year,” Lala says.
 
“Currently Toyota New Zealand’s average CO2 emissions sit at 165.9g/km which is almost 7 grams lower than the industry average. We are focused on introducing balanced, lower emission products to our range.”

Future electric Lexus zaps in

The LF-Z, a full immersion by Toyota’s premier league maker into an all-electric future, is designated a concept – but it also appears all but ready to roll into the showroom.

THEY call it LF-Z Electrified and, officially, it’s just a preview of what a Lexus designed from the ground up to be all-electric could look like. 

With Toyota’s premium brand also announcing overnight intent to introduce 20 all-new or redesigned vehicles globally by 2025, at least half of which executives say will be all-electric or electrified hybrid models, there’s growing speculation this apparently fully operational four-seater SUV crossover here will be heading into production as a next step beyond its only current electric offer, the NX300e.

With a cab-rearward design that is unusual for an SUV, the LF-Z Electrified features many of the company’s signature design elements such as the ‘big tick’ headlights and spindle grill, but with new, more modern interpretations.

The interior features a somewhat minimalist design aside from driver-centric cockpit screens. It’s a driver-focused layout, with a mixture of switches on the steering wheel and a head-up display. The rear of the cabin features two bucket seats.

Lexus already has an electric car and it is expected in New Zealand later this year. But it’s a version of the NX, which was designed for combustion engines. LF-Z goes the next step; there’s no sign it will have an ICE powertrain.

The brand says the car sits on a bespoke electric platform, which is almost certain to be e-TNGA, the EV-specific underpinnings on which Toyota will base its upcoming BZ series of models. The first BZ is set to be unveiled within days. 

At 4880mm long and 1600mm tall, the LF-Z Electrified is just 10mm shorter than Lexus’s most popular SUV here, the RX, but the roofline is obviously lower, by 80mm according to the maker. The EV’s wheelbase is 160mm longer, too.

The LF-Z features Lexus’s DIRECT4 four-wheel-drive system and an electric motor set-up producing a total of 400kW and 700Nm of torque – enough to take the LF-Z Electrified from 0-100kmh in three seconds.

Lexus says the battery is a 90kWh lithium-ion unit, and that the LF-Z can travel for up to 600km between recharges. Its maximum recharging speed is 150kW. 

Lexus president, Koji Sato, has announced that the brand’s product refresh will kick in before the end of 2021.

“Starting with two new models to be released this year,” he said.

“We will continue to develop innovative products that will add colour to the diversifying lifestyles of our customers.”

Lexus New Zealand has yet to explain how the impending model roll out will impact on its own operation, but chief executive Neeraj Lala has offered that:  “The automotive industry both globally and in New Zealand are entering a period of once-in-a-century transformation.
 
“In addition to the growing imperative to achieve carbon neutrality for the betterment of the planet customers lifestyles and values are changing and diversifying at a speed previously unimagined.”

“Lexus will continue to lead the luxury market in New Zealand in reducing CO2 emissions and is looking at its future powertrain offerings. By 2025 Lexus plans to introduce 20 new or improved models, including more than 10 electrified models such as BEVs, PHEVs and HEVs, based on the concept of offering the right products in the right place at the right time.“

“Vehicle concepts like the LF-Z Electrified, excite the senses and give you a true feeling of what Lexus and Experience Amazing means,” says Lala.

Since the launch of the RX 400h – the world’s first luxury hybrid electric vehicle – in 2005, Lexus customers have purchased nearly two million electrified vehicles globally, as at the end of 2020. Lexus globally offers nine models of (HEVs) and battery electric vehicles (BEVs) in approximately 90 countries and regions around the world.

“In New Zealand we have seen customers moving to Lexus Electrified product with a 38 percent increase year to date*,” says Andrew Davis, Lexus New Zealand general manager. “Seventy-one percent of these sales are hybrid-electric powertrains.”

By 2050, Lexus aims to achieve carbon neutrality throughout the lifecycle of its entire model lineup – from the manufacturing of materials, parts and vehicles to vehicle logistics, to the final disposal and recycling of older vehicles.

“Lexus has always pursued both performance and sustainability, and through the Lexus electrified vision, will continue to use technology to create a sustainable future while still embracing the enjoyment and pleasure that cars offer customers,” says Lala.

TNZ still market leader, but Covid hurt

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

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.
 

Toyota NZ urges Government to rev up climate stance

Country’s top car seller says a feebate a must to get wheels moving

Neeraj Lala.

NEW Zealand risks becoming the “Cuba of the South Pacific”, a dumping ground of Europe’s dirty diesels and high carbon-emitting petrol-fuelled cars.

That’s the view of Toyota New Zealand’s chief executive officer, Neeraj Lal, reacting to recent occurrences of political shift toward encouraging a shift from fossil fuels and toward more environmental motoring solutions, including battery-motivated products.

His comments come in the wake of two big headline actions: The move by the United Kingdom to ban sale of new fossil-fuelled cars after 2030 and our own Government’s determination this week to formally joined 32 other countries around the world in declaring a state of climate emergency for New Zealand. 

The NZ initiative brings with it a revitalised focus on electrifying its public service vehicle fleet, thorough prioritising fully electric and hybrid cars, and plans to become carbon neutral by 2025. 

That’s conceivably a switch Toyota NZ cannot leverage to advantage as much as some other brands as even though Toyota hybrid cars are highly favoured by private and fleet buyers, they are not considered electric models, because they lack facility to recharge off the mains.

The Government’s climate response decision has been welcomed by not-for-profit pressure group Drive Electric, though this organisation - which involves 17 new car brands, including TNZ - says the move still doesn’t go far enough.

Mr Lala says the UK’s move is both an encouragement to New Zealand policy-makers and a danger sign that this country could be flooded with used internal combustion engine (ICE) vehicles at the end of this decade.
 
New Zealand needs to work urgently on the right policy settings that encourage much higher take up of electrified vehicles through meaningful financial incentives, he said today. 

“We also need to make sure that we do not end up importing vast numbers of ICE passenger vehicles. Otherwise there is no hope of meeting the Paris Agreement’s 2050 net-zero carbon target.”

A push by new vehicle distributors, via their representative body, the Motor Industry Association, to introduce the ‘feebate’ that incentivises purchase of low and no-emissions cars has TNZ’s support. Mr Lala said the scheme, proposed in the last Parliamentary term by kyboshed by the Government’s then-partner, NZ First, has much merit.

The core element of the scheme is that it incentivises private and fleet buyers of low-emitting vehicles by adding a levy to high-emitting vehicles and using that revenue to reduce the price of low-emitting vehicles costing less than $80,000.

Mr Lala also reminds that the era of Covid-19 has affected car makers ability to produce and ship vehicles.

“As the worldwide supply of hybrid and battery electric vehicles becomes stretched due to global demand, New Zealand will find it harder and harder to access stock without a financial incentive.

“Essentially, we need to get our hybrid and EV numbers up to get higher stock allocations.  

“The feebate scheme should be back on the table, urgently. Toyota New Zealand has opened a dialogue with the Minister of Transport, Michael Wood, and will continue to advocate for financial incentives for electrified vehicles.”

TNZ is easily the biggest seller of mild hybrid vehicles in this country – and is now seeing hybrid editions of popular models outselling their fully fossil-fuelled equivalents. However none will conceivably be considered when Government weans off fossil-fuelled cars in public service use and into electric models, as proposed.

the rav4 hybrid has become massively popular and outsells the fully fossil-fuel alternates.

The market leader has just one plug-in hybrid car, a version of the Prius, but will add another, in the form of a PHEV edition of its most model of the moment, the RAV4. It has plans to deliver an electric car in 2021.

Mr Lala has applauded Government for confronting environmental issues, but says it needs to put financial resources behind its policy.

“Companies such as Toyota (NZ) would be willing to supply the public sector with low-emitting vehicles, but not at cost – it needs to be a win-win for both parties.
 
“With transport emissions accounting for nearly 20 percent of all carbon output, we have a large influence on how New Zealand will progress to a zero-carbon economy. The transition to a low emissions transport market comes with a price tag, but the cost of not enabling a greater uptake of low emissions vehicle could cost Aotearoa/New Zealand and the planet a lot more.”
 

Hope for internationals in TRS

Decision time for the summer international motor racing series is close. Simply running the NZGP is an option.

TOYOTA New Zealand is continuing to work on the viability of running the 2021 Toyota Racing Series in a national environment in which Covid-19 border restrictions will still be in place, but agrees time for big decisions is passing fast.

``We are working through what the border controls will potentially look like for international drivers,’’ said Toyota New Zealand CEO Neeraj Lala yesterday.

``We’ve had a lot of interest from international drivers wanting to come to New Zealand to race. Border control is the obvious challenge we have to work through. It’s a big hurdle.

``There have been some positive signs we’ve seen with rugby, netball and cricket and we’re hoping we can follow a similar path to those. We are working closely with government officials to see what that position might be.

``We absolutely haven’t given up. We tried making the decision before the end of October but we’ll give ourselves every opportunity and delay it as long as we can.

``I don’t believe we can go past November.’’

Lala isn’t ruling out changes to the calendar or a more compact schedule.

``We are looking at what at series under Covid would look like, whether it be a North Island series only.

``But there are other things to consider. To meet our qualification for Super License points there are criteria around the number of tracks you have to race at. That’s a key requirement.

``We are considering a condensed time frame. We are exploring all options and we certainly don’t want to give up on it.’’

In spite of travel restrictions there are signs the Toyota Racing Series has become an even more attractive option for emerging young racing drivers from around the world.

``We have had overwhelming interest this year, more than any other year, for internationals to come to New Zealand and race,’’ Lala said.

Andrew Davis, Toyota’s general manager of marketing and motorsport provided more details on the TRS plans.

``There are lots of options on the table. We have submitted a set of expressions of interest to MBIE [Ministry of Business, Innovation and Employment] and Immigration and we have their support along with Sport New Zealand around being able to review that,’’ Davis said.

``We are encouraging them to review our application as quickly as they can, particularly as other sports are beginning to happen. We need to see how that goes. We haven’t given up.’’

Davis revealed one alternative plan if a full series isn’t viable might be to hold a one-off New Zealand Grand Prix meeting.

``We’ve had positive feedback around running some type of New Zealand Grand Prix. Even if we don’t run a full championship, we are looking at options we can have around a Grand Prix, potentially offering something for the champions that have been racing overseas.’’

He said the Grand Prix idea was one of several alternate plans.

``We’ve got three or four options on the table. We did have the 31st of October as our date to update stakeholders. We’ve pushed that out by a week just to see what happens with Immigration.

``We should have something out early next week and keep people updated as time goes on.

``The cars will be ready to go. We have the people in place and it will all be ready for a full season.’’

At this stage the 2021 Toyota Racing Series is scheduled to start on the January 22-24 weekend. Venues for the originally announced calendar – over five consecutive weekends – hadn’t been confirmed.

The Speedworks NZ Championship calendar currently lists race meetings at Hampton Downs on January 22-24, Taupo’s Bruce McLaren Motorsport Park Feb 5-7, Manfeild Circuit Chris Amon Feb 12-14 and the NZ Grand Prix at the circuit to be confirmed on Feb 19-21.

Dissecting the Mako

Everyone says it’s a Raptor rival – really, though, this special Hilux is about more than Eagle versus Shark.

TIRED of being second best?

Toyota New Zealand tends to affect an off-hand attitude when subject of how the current generation Hilux has been out-performed by a certain other ute in the sales stakes. They talk about how their truck plays its own game and say they’re more interested in optimising customer well-being than beating the Ford Ranger for registrations.

Well, it’s all just brave talk. Assuredly, they want to even the score in respect to perception of which is the better rig. And they would love to reclaim top spot on the sales chart; a place Hilux hasn’t occupied since 2016.

The updated Hilux is a massive improvement on its forebear. TNZ’s claim that the 2020 edition has turned up the heat on the hotly contested utility market with a more powerful turbo-diesel engine, more capability and a tougher exterior design. The new technology and added safety features also do it proud.

Still, it doesn’t hurt to have a hero. That vehicle is Mako, a local development of the SR5 Cruiser wholly carried out by Kiwis – one particular involver for deciding suspension and tyre choice was Tony Groome, a well-known Manawatu off-roading identity who has been working with the brand for some years.

 Mako carries a $21,000 premium over the donor: So, a $79,990 buy-in.

The obvious rival is the Ford Ranger Raptor, that costs $5000 more, but it could just as reasonably be considered an alternate to the $74,990 Nissan Navara N-TREK Warrior and - though it is basically about to cease local representation - Holden Special Vehicles’ Colorado SportsCat, which sat at $82,990. Perhaps even the $82,990 Volkswagen Amarok V6 Aventura. 

Toyota NZ didn’t so much launch the Hilux Mako as deliver it … by Blackhawk helicopter, to a media stop at the Cape Egmont Boat Club.

 Yesterday’s story gave a brief summary about Mako and TNZ’s hopes; that, despite being available to customer order and technically a “special launch edition”, will be part of the regular range for the foreseeable future.

Today it’s time to dissect the beast.

What’s in a name?

Specifically, why call it Mako rather than re-use Gladiator, the name given to the beefed one-off TNZ created for Fieldays a few years back?

There’s a matter of copyright: You might realise that Jeep’s new Wrangler ute is called the Gladiator. That nameplate is employed worldwide and TNZ realised that now the American model is on sale here, it would assuredly be picking a legal stoush by continuing with a name that had been previously uncontested.

Another reason? A new name imprinted that, even though what we get now does have an association with that special model it created (more in a minute), this is a different deal, being a volume consideration. 

Heres’s the one - or, rather, the one-off - they did earlier … the Hilux Gladiator.

So, anyway, it came down to picking a name that was even tougher. TNZ CEO Neeraj Lala claims credit. He’s got a thing for sharks and one kind in particular: The “toughest, strongest, most aggressive” species roaming the open ocean. 

“If you look at the front of the truck, it actually looks like a shark.” A motif in the front badge logo, and the bonnet decal, represent a shark fin.

 Shouldn’t a shark have extra bite – why no under-bonnet modifications?

Outwardly, TNZ will maintain the 2.8-litre now that it has been upgraded to create 150kW – a 20kW increase over the pre-facelift output – and 500Nm (up 50Nm) is quite enough, with much improved low to mid-range oomph.

Beyond that, retuning the engine would have become an expensive and long-winded exercise, and not a job Toyota Motor Company would have allowed to be left to a local tuner. Japan would have wanted any recalibrations to meet their most stringent requirements. Same goes for any transmission fettling.

So, basically, oily bits were a no-go area though Lala prefers to say it was “an area we didn’t explore. From own our testing we thought the power and torque were quite satisfactory, pretty good.”

Anyway, unchanged performance is par for the course in this category. Raptor shares its 2.0l biturbo engine with other Rangers. The N-TREK and the SportsCat also carry unaltered versions of their donors’ drivetrains.

How much of it is just a dress-up? 

Probably around 50 percent at most. Assuredly, there are extensive body modifications that are basically bolt-ons for visual effect: The unique fender flares, side steps with “Mako” logos, T Custom Sports Guard non-slip deck liner, damper-shocked soft-close tailgate and heavy duty rear step bumper are examples of this. Likewise, on the inside, the front chairs are replaced by higher-backed and bolstered motorsport-style items (akin to Gladiator’s tombstone seats), trimmed in full custom leather by a local supplier. And yes, they’re still heated. It also achieves a bespoke steering wheel that’s thicker-rimmed than the standard item and a leather centre console lid.

However, there are also a lot of specially-engineered bits that make real difference in how it performs. These are the items that will make the Mako feel substantially different to the donor. 

So examples?

Well, most obviously the suspension, the wheels and the tyres.

Lala says the determination to fit out the Mako with a full ARB Old Man Emu BP-51 shock set came from having testing “the key competitor in the segment”. Let’s call it Raptor.

However, their choice was also made through previous experience: It’s been a popular aftermarket kit with Hilux customers who are serious about off-roading. We’ve driven a earlier gen Hilux with it - and were hugely impressed. And yes, you’re correct in assuming TNZ’s first use was with the Gladiator.

A fit-out that has required low volume certification gives a 40mm front and 50mm rear lift and has microcharger adjustable compression and rebound control. No clearance and departure angle information was provided. The rear springs are tweaked, too; they’re now to what’s being called Dakar spec. Says Lala: “This upgrade was the thing that we really needed to work hard on. We think it’s one of the best suspension packages on the market.”

 Going to a bigger wheel and tyre was also a Gladiator 101, but Mako is less extreme. Those 18-inch Black Rhino rims sourced from the US are two inches smaller than the Gladiator’s, though with Maxxis Razr 265/60 all-terrain tyres, the rolling radius is likely around the same as with the show truck, which wore 33 inch by 12.5 inch Atturo Trail Blade M/Ts. Mako’s is a better blend for on and off-road capability, TNZ has decided.

Mako’s brake package is more extreme. The Fortuner SUV is a wagonised Hilux, but it has 15mm larger rotors and four-piston calipers. They’ve been used here. Also, Mako has harder brake pads than a regular Hilux. Braking performance is “significantly improved.” Braided front and rear brake lines are also used, to contribute to improved pedal feel. 

Am I right in thinking that front bullbar looks familiar?

If so, then you’ve been checking out Toyota Australia’s Hilux Rugged-X, which is their own variant – now in its second-generation – homegrown for bush-bashing. The Rugged-X’s hoopless steel front bar is a special piece of kit that the Aussies were previously reluctant to share.

The whole shebang – and that includes an integrated LED light bar and bash plates – is designed to ensure the vehicle’s crash test integrity is exactly the same as it is with the regular bumper; achieving this – and also allowing donor car’s parking sensors to remain operable - has required some incredibly complex engineering.

 The piece was further altered for Mako, says Lala. It’s had a custom modification to account for localised finishing, such as the garnish under the headlight. “That’s unique to here, so we had to modify the bumper to fit.” Side fog lamps were also integrated here. 

In case you’re wondering, other common Mako/ Rugged-X elements are those red recovery tow hooks, fender flares and the heavy-duty rear bar with step.

 Are there any options? 

Just one. The towbar kit, which also includes provision of the rear recovery hooks. We assume buyers could also install diff lockers, which are available with the Old Man Emu kit. Again, we’ve tried a Hilux with these and were stunned by what the rig could do.

Does the rework affect the warranty?

Not at all. It has the same cover as any other Hilux, so up to five years warranty, roadside assistance, WoF coverage and capped-price servicing. Plus the price is fixed and not subject to any fluctuations that might impact of the cost of individual add-ons. So the sticker is a Toyota Driveway Price (TDP) that includes on-road costs. As mentioned yesterday, Mako also maintains the same 940kg payload and 3500kg braked tow rating as other double-cab 4WD Hilux models.
When and how can I buy it?

The second part first. It’s not a showroom model. Vehicles are pre-ordered and then put together, at the company’s refurbishment plant in Thames; so it’s a total custom build. Buyers can get to choose colours and will get updates on the progress of the refettling. At the moment there is just one example in existence and the programme really will take a couple of months to get going. Parts are still arriving and though build begins just before Christmas, the production process won’t really get up to full speed until early next year. Deliveries will probably begin in February.

If the build volume is uncapped how special will it be?

TNZ has decided not to make this a limited-count product but, at same token, even a best-hope forecast is of 400 units a year – and that’s based on pre-Covid market conditions – and the more likely achievement of 250 per annum means it’s hardly going to be a common sight. 

“It is the first time we’ve offered a customer a bespoke, built-to-order product … there’s so much uncertainty in the market in respect to volume. In the current situation, I think we can still achieve 250 plus.”

If you’ve ordered a 2020 update SR5 Cruiser, expect a call from TNZ. That status lends first opportunity to buy into enhancements that the Australian motoring press say likely delivers a better hard-out Hilux than they get.

One has already called it the world’s toughest Hilux.

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.

GR to Rallye to WRC cause

A special edition of Toyota’s upcoming GR Yaris sounds tasty … as does our neighbour’s incentive programme for this new hottie. We might see one, but probably not the other.

AN even wilder version of Toyota’s super-heated GR Yaris is heading into production.

Set to be available in the first half of 2021, the GR Yaris Rallye – the white car seen here - further enforces the maker’s assertion that this three-door racer was not only born from Toyota’s success in the heat of motorsport but will have a credible ongoing homologation role with Toyota’s World Rally Championship programme.

The Rallye’s status with the emergent Gazoo fanbase will also be elevated through it being a limited-edition car.

 The difference between it and the ‘regular’ edition (represented by the black car) arriving in New Zealand soon isn’t defined by outright performance but by enhancements elsewhere.

Specifically, the Rallye will have circuit-tuned suspension, Torsen limited-slip diffs for both the front and rear axles, 18-inch forged alloy wheels from BBS, Michelin Pilot Sport 4S tyres and red brake calipers.

Naturally enough, those ingredients have been developed by Toyota Gazoo Racing in collaboration with Tommi Makinen Racing, the team that took the original Yaris WRC to a world title in 2018, 12 months after the car entered competition.

The Rallye’s additional content is undoubtedly more than window dressing.

Makinen’s outfit is now developing the new road car into their contender for the 2021 season and beyond – undoubtedly those extras will some way or another prove useful for the motorsport process.

The Rallye – which also restricts to just three paint colours; black, white and red – maintains the 1.6-litre three-cylinder turbo petrol engine in the same tune as the standard GR and also keeps the six-speed manual gearbox.

With 200kW and 370Nm the engine is the most powerful triple in production and gives both editions of the car an ability to sprint to 100kmh in just 5.2 seconds. The Rallye’s edge will undoubtedly come in the corners and under braking.

Talk of the Rallye has emerged with Toyota in Australia announcing a pricing plan for the GR Yaris that perhaps might leave New Zealand enthusiasts wondering how they might find a way to secure the model there and ship it back across the Tasman.

Toyota New Zealand’s announced sticker of $54,990 has been undercut by our neighbour – and massively so during a programme designed to elevate the Gazoo image across the Tasman.

Toyota Australia’s car, which seems to be kitted identically to that coming here, will only be $1200 less expensive than here at full recommended retail – but to ensure it gets off to a smart start, the first 1000 sold will only cost $NZ43,400 drive away. A huge $11,590 undercut.

The Rallye is not included in that programme and how much of a premium it will carry over the GR has yet to be announced.

Toyota Australia’s vice president of sales and marketing, Sean Hanley, says the launch price was to incentivise support for the Gazoo Racing brand, which is probably newer to our neighbour than it is here.

The NZ awareness programme began even before the first GR car, the Supra, landed last year as it was used in a sponsorship association with the international single seater Toyota Racing Series since the end of 2018.

As for a discount start here? It doesn’t sound likely, from the tenor of comment from TNZ chief executive Neeraj Lala.

His thought about what’s going on across the Tasman?

Says Lala: “Toyota New Zealand has not offered a Recommended Retail Price in New Zealand for the past 2.5 years to avoid this situation.

“This means our Toyota Driveway Price (TDP) provides our customers with an up-front and transparent transaction price which includes on-road costs and subsidised servicing.”   

BTW, he declined to comment on the potential of the Rallye coming here.

The GR Yaris is the first homologation special since the Celica GT-Four, the car that was used to find WRC rally success when Toyota was last involved in international rallying, becoming the first Japanese maker to win the WRC manufacturer’s title, in 1993. 

Toyota’s plan is for the GR Yaris to be an even hotter ticket for road use than the Celica and the hope is it will establish the same street status as such stage-to-road greats as Ford’s RS Escort Cosworth and Subaru’s Impreza WRX.

Lexus NZ to join pure battery power play

The first EV from Lexus is coming to NZ. But does a core question remain unanswered?

CONFIRMATION the UX 300e, the first EV production vehicle from Lexus, will come to New Zealand leaves uncertainty about whether parent Toyota also has a battery car heading this way as well.

Toyota New Zealand, of which Lexus New Zealand is an operational aspect, is declining to offer elaboration.

This comes after Neeraj Lala, chief executive of both, confirmed the 300e will be sold here. He would not say when that will happen and no other details have been forthcoming.

Lexus has cited China as a primary market for the model, hence why they chose to stage the international reveal at last year’s Guangzhou motor show. And while it also cited Europe and Japan as other recipient markets, it has never been clear about what other countries might be in line. Until now, of course.

With Lexus in the EV-sphere, where does that leave Toyota? It and Lexus have said they plan to release three EVs by the end of 2021. Also, in past discussions with media, but specifically during a media conference on August 3, Lala said the main brand will have its first EV on sale in NZ in 2021. The broader gameplan involving, as well as the single EV, a PHEV and more mild hybrids, was outlined on August 6 (https://www.motoringnz.com/news/2020/8/6/extra-electric-involved-product-for-tnz).  

So is that the Lexus – bearing in mind that TNZ is always adamant, in the face of the obvious ownership situation and occasional engineering and technology cross-pollinations, that Lexus and Toyota are separate entities – or is it another car?

That question has been put directly to Lala today. However, the response, via TNZ’s communications channel, is no comment.

And so to the UX 300e. Built on Toyota’s GA-C platform, it runs a front-mounted motor that produces 269kW and 300Nm of torque. Energy comes from a 54.3kWh underfloor lithium ion battery offering a claimed range of around 315km on the official WLTP testing regime. It's capable of 0-100kmh in 7.5 seconds and has a top speed of 160kmh.

The model is capable of DC replenishment and rapid-charging from zero to 80 percent takes 52 minutes. It features a number of driving modes so that the performance of the motor can be better managed, along with paddles to alter the strength of the regenerative braking.

Lexus says the drivetrain has been developed with a focus on on-road performance and the goal of offering a quiet and refined driving experience. Extra bracing has been added over the regular UX hybrid and the dampers reworked to maintain optimum weight distribution.

The first market to announce intent to sell the right-hand-drive has been the United Kingdom.

It says it will take a single model, with two options: Premium Plus and Takumi. Standard equipment runs to LED headlights, heated seats, parking sensors, a reversing camera, 17-in alloys and smartphone integration.

Premium Plus, adds leather upholstery, a heated steering wheel and heated rear seats, keyless entry and a wireless smartphone charger.

The Takumi option comprises an upgraded sound system, a 10.3-inch infotainment screen, surround view camera, 18-inch alloys and a sunroof.

Special features include Active Sound Control  that “transmits natural, ambient sounds to communicate the driving conditions”. Smartphone integration will allow owners to check battery charge and remaining range remotely, be notified when charging is complete and pre-condition the car using the climate controls.

The 300e has not diverted from the general US styling, but of course has specific badging and has picked up aerodynamic wheels.

Extra electric-involved product for TNZ

A plug-in version of the RAV4 and a fully electric car have been cited to join more mild hybrids heading into Toyota’s local showroom.

is one of these concepts shown last year destined to become toyota’s first electric car sold in new zealand?

FIVE more mild hybrids, a plug-in replenished battery-assisted model and a fully electric car are on Toyota’s national agenda, though sign-off for several – including the EV – has yet to be fully sorted. 

What’s being sought and when it might arrive, all going to plan, has been shared by Toyota New Zealand.

Aside from the Yaris Hybrid covered extensively this week, the roll-out starts with another hybrid CH-R, but in a sportier-looking format that leverages the GR (Gazoo Racing) pitch that TNZ continues to develop. It’ll be here before the end of the year.

Following, apparently in the first half of 2021, are two vital volume products. The heavily revised Camry and a new Highlander, are also primarily – if not wholly – running battery-fed petrol drivetrains next year. So, if you still prefer a petrol V6, act fast. That choice will not transfer to the new lines.

Also tied down for New Zealand introduction, but with time yet to be fully sorted, is a hybrid Hilux. Toyota New Zealand’s chief executive, Neeraj Lala, says he hopes to see it in the latter part of next year, but accepts release could yet spill into 2022.

So that’s five: What else is in the thought stream? Two potential big-hitters that draw off mains power.

There’s the RAV4 PHEV/Prime, which replenishes its plug-in petrol-electric drivetrain off the grid. After debuting in North America last year, it’s now being built in right-hand-drive in Japan, but only for sale there at this time.

the rav4 prime was introduced to North America last year but has now entered right hand drive production, but just for Japan. TNZ has pitched for it. The car’s drivetrain (below) delivers around 90kms’ pure electric operation. It’s also designed to give a performance edge.

In this variant the front motor and inverter achieve more powerful output than the RAV4 hybrid system, the maximum system output cited at 225kW, which Toyota says, facilitates a 0-100kmh time of six seconds and “sporty, powerful driving”. 

The make also claims a wholly electric driving range of 95 kilometres. That’s well above the cited range for Japan’s only logical competitor already sold here, the Mitsubishi Outlander PHEV. The EV range, and the car’s claimed total range of 1300km, is a calculation based on Japan domestic market processes.

Lala is keen to see it and says introduction as a domestic Japan model is a good thing.

“We’ve asked Toyota Motor Corporation if that car can be made available to New Zealand. We have not had confirmation yet but it is a car we would definitely like to have in our market. 

For 2021? He hopes so. One alternate option for TNZ is to introduce it as a brand-backed used import, via the Signature Class channel, but Lala’s preference would be to represent it as a brand-new product.

But that can take time. “Introducing a new car isn’t easy … there has to be a lot of testing and compliance to ensure it meets our conditions. But generally, if something has been available as Japanese domestic it has been pretty much a safe choice for NZ compliance so we’re hoping there won’t be too many hoops to jump through.”

And then the ultimate step …  a fully electric product. Which is what exactly; a completely new model or something based off an existing product?

No help here, from Lala. He’s sworn to absolute secrecy. “I cannot tell you anything about it.”

Highlander hybrid has already been confirmed for 2021 launch.So has Camry (below)

That doesn’t mean nothing is known. Toyota’s determination to branch away from being the global kingpin in hybrid drivetrains and start plugging into the zero emissions EV-sphere was announced 14 months ago, when it announced intention to create pure electrics not only for itself but also for other Japanese marques in which it has tech agreements.

Toyota then unveiled a new platform with enough flexibility to entertain what could be a very wide span of different kinds of vehicle – from small city cars to large sports utilities – using a "next step" solid state battery it also racing to get into production.

The starter project is an all-electric platform for midsize and large vehicles jointly developed with Subaru. Those brands are also working together to produce an electric crossover far more advanced than the mild hybrid Forester and XV recently launched here.

That vehicle, which will be sold separately under each brand, will debut in the early 2020s and, though the US is cited as a main target market, other countries where Subaru performs well (and that’s NZ) are expected to stand a chance.

Toyota is also working with Suzuki and Daihatsu to jointly develop a compact EV.

It revealed last year that its new platform would initially underpin six variations in all - a large SUV, a medium SUV, a medium crossover, a medium minivan, a medium sedan and the compact. Styling concepts of these proposals were presented at a forum on June 7.

TNZ’s intention to take an EV is an acknowledgement, after years of denial, that nothing less than a fully electric car with actual external recharging functionality has become a must-have in this market.

Even though it has long delivered battery-involved cars across the Toyota and Lexus line-ups that have a degree of regenerative capability, presently only one product in the showroom – Prius Prime PHEV – even counts as an EV.

That’s why Government departments and companies looking to include EVs in their fleets have had to bypass the Camry, Corolla, RAV4 and Prius mild (non mains-replenished) hybrids.

plug-in capability is a requirement to achieve electric vehicle status.

Toyota Motor Corporation has said its EV deployment plans will not slow down its hybrid imprint; hence why TNZ – which has 17 already, just two less than Lexus – is able and keen add more.

Yet Japan headquarters has also acknowledged a "sudden surge" of international EV popularisation – and the repercussion of increasingly stringent emissions requirements in China and Europe - has meant it has to reconsider its thinking, which until now has been that electrics are an unnecessary step between its petrol-electric hybrids and the hydrogen fuel cell vehicles it still sees as being the ultimate cars of the future.

Accordingly, it cites that of the 5.5 million battery-assisted vehicles it aims to build by 2025, almost one million might well be pure EVs.

TMC had intended to showcase unveil a solid-state battery for electrified vehicles ahead of the 2020 Summer Olympics in Tokyo, which were to have begun this week but instead have been delayed until 2021, assuming the world is by then on top of the coronavirus crisis that has caused so much disruption since March.

Solid state technology promises lighter, more powerful and safer batteries and could well be a breakthrough in popularising EVs.

Toyota is still forging ahead with a plan to start making EVs in China, purely for sale in that country. The first was expected to be a variant of the CH-R.

The new dedicated EV platform it has developed with partners is dubbed e-TNGA, a play on the company's new-generation Toyota New Global Architecture modular platform used by Corolla, Camry, RAV4 and the latest Yaris, also about to come on sale here, including in a mild hybrid form.

Toyota’s decision to also give Hilux a hybrid drivetrain was announced some months ago. Lala ‘s enthusiasm for this product is very high; he sees a big potential. Some others in the sector are looking to going all-electric – just this week the New Zealand importer for the LDV brand reckoned it will have a purely battery-compelled edition of the current T60 ute here next year. Production is set to kick off in the second quarter, with NZ market arrivals stated to start in the third quarter. Detail about the potential range, outputs and price ate still under wraps. LDV already has an electric van in the market with another on the way.

It’s far from clear whether a Hilux hybrid will be petrol-electric or diesel-electric. The latter would be a first for Toyota, which favours petrol-electric hybrid technology over diesel in its passenger car line-up.

Toyota out to cuff police contract

Commodore today, Camry tomorrow? Toyota NZ is investigating if it can join the thin blue line.

will the 2021 Toyota Camry report for duty as a Commodore replacement?

PROVISIONING police with a patrol car remains a Toyota New Zealand consideration, particularly in the wake of the collapse of rental car business.

The Palmerston North brand has acknowledged it is on the hunt to snare lucrative Government fleet opportunities including the biggest plum of all – delivering a replacement for the Holden Commodore police car, whose days on the beat are numbered with its production having ended and its maker soon to become extinct.

It is understood police are now trialling potential replacement cars for frontline duty and that they have renewed interest in the Camry sedan, thought to have been the runner-up to ZB Commodore when the tender was last contested, four years ago.

One example configured by the brand for front-line duty as part of the trial still appears to be operational in the Wellington area.

The Camry as tested by the thin blue line previously was a potent six-cylinder but perhaps the determination to use only four-cylinder ZBs is a sign police tastes have changed. TNZ’s certainly have. The distributor signalled some months ago that the V6 won’t feature in an update Camry arriving early next year.

However, it believes its 2.5-litre full petrol four-cylinder engine – which TNZ now suggests might yet provision in the update range, should perceived demand warrant it -and the hybrid would be just as good.

Do police agree? A reluctance to employ anything other than fully fossil-fuelled cars in the line of duty was expressed in the wake of last December’s announcement about Commodore production ending, when a spokesperson said that while they wanted to use as many hybrid and even fully electric cars as they could, it would only be in non-patrol roles.

TNZ chief executive Neeraj Lala isn’t sure that attitude still applies.

“My understanding of that is a little bit different. They have specifications, like a 0-100kmh specification, that they would need for a pursuit car, but currently we have a hybrid that would meet that. 

“The 2.5 also meets the standards they expect of pursuit cars.” Lala acknowledged the wholly petrol engine was initially not expected to be provisioned in the 2021 Camry update but could yet show if there was enough support for it, if just to meet all-of-Government contract requirements. “When we talked about being hybrid-only for Camry from next year it was before we knew about the Holden situation.”

In any event, it wasn’t just about get up and go. There was a host of criteria to meet, including technical standards to ensure nothing in the applicant vehicle conflicted with police equipment, especially the frequencies electronic law enforcement hardware operated at.

“As infotainment gets more complicated, as powertrains become more complicated with sensors, radars, safety equipment, hybrid and EV batteries … testing and compliance tends to become more structured and rigid. And there have been issues in the past,” he said.

TNZ chief executive Neeraj Lala

He believes one area Toyota has a lead on is with backup; the national sales network was fully up to pace on  keeping any fleet operational with excellent parts, service and support. 

Police are also building up their fleet of unmarked cars and Toyota has recently provisioned some Highlander SUVs, also currently V6 and set to revert to a hybrid-only format with a new 2021 model. It also provision Land Cruisers for specialist work and some hybrid cars for community constable work.

Lala explained that was not a signal of any favouritism in respect to the patrol car pitch.

“It’s been made clear that it’s certainly not a confirmation that Toyota has won the tender but we certainly have some cars in their fleet and we are working hard to see if Camry can be an alternative.

“I’ve been quite firm that I think the relationship needs to be mutual for us to engage. It’s certainly not something that we are chasing hard, but it certainly something that we would appreciate if it came towards our brand.”

Holden’s contract with police goes back many years – it started with the Kingswood in 1968, but really cemented with Commodore, with VT, VX, VZ, VE and VF lines siting as generic road vehicles of choice, outlasting the Ford Falcon and Nissan Maxima.

Terms of the association are never discussed but the fleet size alone suggest it will be lucrative.

Certainly, it was so highly prized by Holden that police were allowed to trial the ZB in Australia in secrecy more than a year before it became production ready. The current contract was also signed off well ahead of the car’s public release here, in May of 2018.

The car proved controversial – with complaint about the lack of headroom in the rear of the sedan causing a shift to the station wagon edition – yet announcement of Commodore’s demise was a shock to police.

It clearly still held hope of seeing through the latest contract with Holden, which conceivably ran to around 2023, according to past brand acknowledgements, by taking other products in the brand’s portfolio, including the Acadia and Equinox SUVs and Colorado ute. However, that’s now no longer a goer with GM having killed Holden completely, with the retail arm set to cease very soon.

Holden had formed a really strong marriage that in any other circumstance would have been hard to break up, TNZ’s boss suggests.

“We’ve been pitching to police for as long as I’ve been with the company; we’ve put our best foot forward and been unsuccessful because they have had a really good relationship with Holden and they clearly felt no need to move.

“For us in the past it has been about good due diligence – just making sure they were testing other products in the market for when, and if, a change was needed.

“Obviously all this has moved up a gear given Holden’s departure.”

Discussion about this arose from TNZ revealing how hard it has been hit by the virtual wholesale collapse of the rental car sector as result of the coronavirus lockdown kyboshing international tourism.

A sector that took 9619 new Toyotas and accounted for 31 percent of the Palmerston North-domiciled make’s sales last year has this year taken 172 cars for a two percent slice of sales to date.

TNZ’s response has been to divert energy into building up sales to the private sector and to fleet operators, primarily the Government, with positive result. It says it has just won a tender to provision a significant count of vehicles, mainly hybrids, to the Ministries of Justice and Education.

It’s also pumping up private sales, with particular success with the RAV4 hybrid. Fleet sales, either facilitated directly through TNZ or via its dealer network, including those to Government have collectively grown from delivering 41 percent of registrations to 63 percent.

Of course, while the percentages are up, actual sales counts are down. For instance, while private sales now represent a 35 percent share of current trading – so almost double the 2019 imprint – the counts are much lower; 235 units to date in 2020 against 6001 for all of 2019. As of end of June, fleet and Government have accounted for roughly a quarter of the just over 16,000 Toyotas they secured for all of last year.

the zb commodore has transferred police drivetrain allegiances from six-cylinder and rear-drive to four-cylinder and front-drive. However, police have yet to put a hybrid into the front line.

How will the rest of the year pan out? Notwithstanding that last month was huge for new car sellers and the Japanese giant had the top-selling car (RAV4), retained comfortably as the passenger sector leader and enjoyed the biggest monthly retail count (1755 units) since the launch of the new Drive Happy business model in April of 2018, its long-term forecast is cautious.

The entire market is down almost 25 percent year-on-year and industry perception that today’s rush is being fuelled by a short-range fuel – people are spending money on cars that they had set aside for overseas travel that cannot be taken – seems to be accepted by the leader, which believes a rocky road is ahead.

Even though TNZ has identified that the loss of the rental car market and a subsequent significant de-fleeting of stock by some operators had synched with a considerable market shift in used car tastes, away from ex-overseas used (which are in short supply) to low-mileage, late model NZ-new, Lala says it’s fair to say this is “experiencing changes like we’ve never seen before.”

An industry that had recorded a decade of quite considerable growth, reaching peak of just over 161,000 units in 2018 before softening slightly last year, was now facing a further 35 percent decline.

Or worse? Lala is confident Toyota is on target in predicting 100,000 registrations this year, even though others have suggested lower returns.

“Some of our competitors are suggesting a reduction more dramatic than 100,000 but I personally cannot see that happening … even if the wheels completely fall off in the fourth quarter, I can’t see the market fall below 95,000, maybe 90,000 as an absolute worst case scenario.”

When and if the rental car market would re-open was a question without any quick resolution, he suggested, and obviously TNZ, as the dominant supplier, was hard hit.

“When you remove 30 percent of our sales overnight … well, it’s never easy losing that volume.

“The pain of that tourism loss in the lockdown has certainly transferred throughout our entire business. It’s probably safe to say that this volume will not return … while the borders remain closed.”

As for the long-term forecast for car distributors? “We are, I think, heading toward a tough time – whether that’s late in the fourth quarter or early first quarter (of 2021) we have to wait and see - but at this stage we will go as hard and as strong as we can.”

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

Toyota Yaris: Tapping into heightened buyer awareness

The fourth generation of Toyota’s baby hatch has finally arrived – here’s what we can tell you without having yet had chance to drive it (you’ll find out why in the story).

MIGHT an incoming high-set crossover version of the new Yaris so overshadow the orthodox models arriving now as to endanger their ongoing showroom presence?

The possibility of this has been acknowledged by the brand’s national boss.

“I believe over the next 12 to 18 months that Yaris Cross will be the Yaris hatch replacement,” says Toyota New Zealand’s newly-installed chief executive, Neeraj Lala, in speaking to changing trends in the light car category. 

“Given the trends in the market and given that this car (the Cross) has such high appeal to a slightly older demographic, I think the Yaris Cross will be the dominant small car for us. 

the yaris cross is about six weeks from release.

“What that means for Yaris hatchback moving forward we will wait and see.”

Though it has never been able to emulate the volumes achieved by Toyota’s most popular car, the Corolla, Yaris has traded as a solid performer across three preceding generations, though registrations have diminished in the past two years, from 2002 in 2018 to 1802 last year.

The light car sector still achieves around 10,000 to 11,000 units per year for an 11 percent share of new car sales, according to Toyota NZ. Yet the market leader’s optimism about where is going seems greater than general industry sentiment. Many brands have struggled and core historic rival, Ford, has become so disillusioned as to pull mainstream editions of the Fiesta and instead pin all hope on a performance ST.

TNZ’s ongoing positivity seems driven in large part because it is strengthening its private buyer business and now has a hybrid drivetrain.

Yet it is also acknowledging change in consumer taste. Hence why the Yaris Cross is just weeks away from introduction.

TNZ has yet to fully unwrap its plans for this derivative, but as a spin-off design off the same engineering and design base as the pathfinder hatchbacks it could well also fully replicate the hatchback line which comprises four 1.5-litre petrols, all driving through CVTs, two with a hybrid drivetrain, and in GX and ZR specification grades. 

Being taller and with greater ground clearance than the donor – though only for show (no additional off-seal competence is claimed) – the Cross will potentially have a premium over the hatches, which range from $25,990 to $32,990, unless a special paint finish is chosen. That adds $500. 

A crossover is just one new direction for Yaris – it is also set to configure here as a fully hot hatch by year-end.

Inspiration for the wild 192kW/360Nm four-wheel-drive turbocharged GR (for Gazoo Racing) car comes from Toyota’s entry in the wavering World Rally Championship and is also fired by the brand’s determination to rev up its showroom image.

The GR will be the basis for a replacement for the Yaris that currently competes in WRC and would assuredly have been seen in action here in September had not our round been skittled by coronavirus.

Interestingly, the brand has already started the GR push in Japan with a curious concoct called the RS. This delivers the same imposing wide-hipped body, bespoke aero package, twin exhaust outlets and ultra-wide stance of the full-fat GR but runs the mainstream petrol engine. There’s no talk of it coming here.

TNZ has already taken 20 firm orders for the GR and says this interest has been enough to persuade Japan to provision more than the five units it originally earmarked for NZ for this year.

TNZ’s enthusiasm for the additional family members notwithstanding, it also sees interest in the Yaris as it presents just now being re-energised.

The model going to a fresh platform promising better driving feel, a lift in safety equipment and the hybrid’s efficiency have been cited as factors expected to raise the car’s game and status.

The latter might seem of especial interest, though the tech has taken its sweet time getting here. While this is the first hybrid Yaris available new here, it’s actually the third Toyota has created: The predecessors were based on the gen three car that NZ took from 2011; the first went into production in 2012 then was radically re-engineered four years on. However, it was only ever available in certain markets, none at this end of the world.

This latest one looks a lot more convincing than the predecessors, even though the pure electric operability is as limited as on any other Toyota hybrid – basically, the battery-only impetus avails at start-up, in reverse and at very low speed, for very limited duration, moving forward. In keeping with the Toyota/Lexus hybrid culture, it of course also lacks capability for plug-in replenishment, a feature required to establish connection as an electric car. 

Yaris misses out on claiming as the country’s cheapest battery-assisted new passenger product - that title being recently snared by the Suzuki Swift hybrid.

Yet it certainly stakes a strong claim for market-leading efficiency (76 grams per 100km) and economy, siting as the most fuel efficient car in New Zealand without the ability to run on batteries alone, with the lithium ion battery-fed 85kW drivetrain eking an official combined consumption of 3.3 litres per 100km. 

That figure gives it a narrow lead over other established sippers, nonetheless. For instance, it’s just a 0.1L/100km advantage over the claimed optimal from a full-sized Prius and a 0.6L/100km advantage over a car that would set to now be bumped from the market, as it’s been around for eight years.

That’s the Prius C, which also sits in a lower tech level by having nickel hydride batteries. The closest rival outside Toyota is the Hyundai Ioniq Hybrid, which delivers 3.4L/100km. As always, all this becomes somewhat theoretical in real-world conditions anyway. 

Still, Lala reckons those factors will be acknowledged by the Green-minded, saying: “With the … hybrid, you know you will be reducing your carbon footprint.”

The 1.5-litre engine also does its bit, through applying the Atkinson-cycle principles that have featured in previous fuel-eking Toyota petrol engines, but in a three-cylinder format. Toyota claims the 1.5 has a rated thermal efficiency of 40 percent, which it says is greater than comparable diesel engines. Emissions are higher that the hybrid, at 114g/km, yet the standard engine is more efficient than the outgoing car’s by some margin. 

So how does it go? Erm ….

Opportunity to independently assess the model’s mettle and verify Lala’s claim of this being “the most premium small car Toyota has built” that “lends a driving experience unrivalled in the segment” and is built to be fun has been left unfulfilled.

 TNZ broke with the convention of a media gathering at a central location with cars on hand to drive, instead favouring a remote internet conference, with 90 minutes of presentations beaming out from TNZ HQ, which last week announced as the first site in Palmerston North to achieve 5G.

 A fallout from Covid-19 concerns? Certainly, several past such national events conducted by other brands have been – but only during lockdown. Now, of course, we are free of restrictions on travel and mingling.

 However, TNZ reckoned it didn’t see potential from a traditional media gathering, on grounds that it couldn’t corral enough cars for a drive programme. (Yes, just to remind, this IS the brand that dominates the market we’re talking about; primarily being serviced by factories in Japan, whose production was largely unscathed by coronavirus). It has promised to stage an orthodox event for the Yaris Cross and GR in October.

 As previously reported, this Yaris runs two kinds of CVT – the pure petrol’s coming, in ZR form, with paddle controls and an astounding, potentially bewildering 10-speeds – and also breaks ground by achieving the latest Toyota Safety Sense package as standard.

 Even the entry-level car gets dynamic radar cruise control and lane-tracing assist. In a Toyota first, front seat centre aisle airbags have been added to reduce the risk of the driver and front passenger colliding during a side-on collision.

 The pre-collision system has also been updated to use a camera, radar and autonomous emergency braking to avoid or mitigate the effects of a crash and it is the first Toyota to gain two collision avoidance systems, delivering automatic braking and steering intervention, previously restricted to some Lexus product.

 Aside from detecting vehicles and pedestrians both day and night, and cyclists during the day, the full system is also claimed to detect and automatically brake to avoid other vehicles and pedestrians when turning at intersections. The on-board camera can also recognise speed signs and alert drivers if they’re going above the posted limits and also facilitates a lane-keep function.

 The ZR variants also feature blind spot monitor plus front and rear parking sensors that can trigger the brakes to avoid contact.

 It is the next Toyota to adopt full smartphone integration including Apple CarPlay and Android Auto. Functionality is via a large, high resolution touchscreen that stands out as one of the high-quality features now in a cabin in which, Toyota says, trims are now more premium.

 The GX has a black interior, while the ZR has a contrasting grey and black interior with red accents, both with cloth trims. The ZR has sports style seats, climate control air conditioning, smart entry with push button start, digital speedometer and a heads-up display.

 TNZ is promoting this fourth-generation Yaris as being more spacious than predecessors. The front seats have been moved outwards by 10mm to create more space between the driver and front passenger, while the seats are lower in the vehicle also. More storage space has been added in the front console, under the audio unit and in front of the front passenger.

The Yaris and Yaris Cross have the same 2560mm wheelbase, but the hatch is 240mm shorter overall, the crossover adding 60mm to the front overhang and 180mm to the rear, to ensure more interior space. The ground clearance is 60mm higher with the Cross and, with 1550mm height, the hatch is 90mm lower and 20mm narrower overall.

The maker is also asking consumers to take note of the car’s “new energetic and sporty look”. The GX features new 15-inch steel wheels with cover, while the ZR has two-tone machine- finished 16-inch alloys. 

Keeping with that theme, the ZR is available in two two-tone options – an ebony roof coupled with either eclectic blue or coral exterior paint options.

The combined effect of the improvements does hit the bottom line, of course. Take note that the outgoing line priced between $23,290 and $27,490 when it launched back in 2012. However, Lala says the impetus has not been to sell Yaris as the cheapest car but as the best; TNZ research also suggests buyers are increasingly looking for more premium features in the choices, and don’t mind paying a little extra for it.

Camry updates acknowledged

Toyota is putting a more efficient battery into its Camry and bringing a facelifted model.

 ADVANCE notice of changes coming to the Camry has been given.

A fresh front end styling sits ahead of some key technology improvements that mean an upgrade to the already comprehensive Toyota Safety Sense suite of assists.

What the maker is calling Safety Sense 2.5 includes upgrades to systems such as the pedestrian-detection and adaptive cruise control functions.

The car also takes a new dash design, the big change there being a different touchscreen infotainment set up – it also now a tablet-style arrangement, meaning it sticks out of the dash. 

Before we see this, the hybrid drivetrain that has become core to the car’s appeal will be given a refresh.

Retirement of the current 245V nickel metal hydride battery for the 2.5-litre petrol electric drivetrain for a more efficient 259V lithium-ion battery is set to happen very soon, well before the new look arrives.

Which is when, exactly? Well, don’t be in a rush to grill your dealer – as said, though released now, this news about the mid-life restyling process is very much ahead of delivery time. The changes will not chime in until early next year, in fact.

However, with first Toyota in America and then the brand’s Australia outpost having notified the update, Toyota New Zealand has been compelled to speak, with chief executive Neeraj Lala offering the following in respect to the updates and the brand’s thinking about the ongoing status of a car that has been pointed more toward private sector and weaned off fleet and taxi stand favouritism.

“While the sedan/passenger car customer interest does continue to decline, we have seen a significant increase in Camry sales since the launch of the new generation model in 2018,” he offered.

“Our market penetration for private Camry sales is sitting at 30 percent year to date. We are increasingly seeing customers move towards hybrid powertrains across all our models and Camry is no different with 85 percent of our sales year to date.

“We have had great customer feedback on how it is a great car to drive, and people quite literally can’t believe it is a Camry they are driving!”

‘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.”