Toyota might cap how many utes it sells in New Zealand

Tuesday, 31 January 2023

The Toyota Hilux, formerly New Zealand’s most popular vehicle, is unlikely to reclaim the crown until it gains electrified options.

Toyota New Zealand chief executive Neeraj Lala has said that the brand is considering imposing a limit on the number of Hilux models the brand sells locally, as it aims to reduce the emissions of its fleet.

Speaking to Stuff, Lala said that the brand believes sales of its ever popular Hilux should not exceed 30% of its total deliveries.

A fully electric Toyota Hilux concept was revealed last December.

“[We are] only going to bring in a fixed number of Hiluxes. And when those Hiluxes are allocated to customers, they are gone. We could bring in more, but we’re not going to,” said Lala.

“There’s two things happening. On the new car side, we have to operate a balanced portfolio of products to be on our CO2 trajectory and satisfy customers,” Lala added.

“To do that we’ve looked at our mix and gone ‘we don’t believe Hilux can exceed any more than about 27 to 30% of our total unit’.”

Could the Hilux skip BEV technology in favour of hydrogen? A hydrogen model has been confirmed for small-scale production in Europe.

Toyota Design Senior General Manager Simon Humphries on the company's new range of battery electric vehicles.

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In 2022, Toyota sold 9,787 Hilux pick-ups. With Toyota selling 28,727 vehicles overall last year, this means the Hilux accounted for approximately 34% of the brand’s local sales – a figure it aims to lower in 2023.

For reference, 11,577 Ford Rangers were sold in New Zealand last year. With Ford selling 15,212 vehicles in total, it means that the Ranger accounts for a staggering 76% of Ford’s total sales.

The brand has been open about its aim to reduce the number of Hilux utes it sells in New Zealand. As previously reported, its sustainability report for 2022 underlined a push to direct some fleet customers away from utes and towards hybrid SUVs instead.

“For commercial customers who have preferred to run fleets of diesel Hilux utes, we are encouraging a switch to a hybrid electric RAV4 or Highlander where appropriate,” it said.

“We believe utes are not always necessary for fleet use when the majority are passenger-only driving on tarmac between offices and work sites,” it added.

“In the past, Hilux sales have been a significant part of our sales. While we await new innovations to enable an electrified version, Toyota New Zealand has committed to selling less Hilux utes in the future, and for those that we do sell, they will be targeted at people or firms that need them.”

A ceiling on the number of Hilux utes sold in New Zealand is likely to only be in place until models with alternative fuel powertrains become available. Toyota notably unveiled both a hydrogen fuel cell and fully electric Hilux late last year – the former a production study and the latter a concept.

Lala notes that on top of the targets Toyota New Zealand outlined in its sustainability report, it also aims for 100% of the pre-owned cars it imports into the country to be electrified “as soon as possible”.

“It’s not just about cars and the carbon account and the mix of Hiluxes, it's about taking a completely different business approach and design.

“I feel that fully battery electric micromobility could be the future of ensuring people in New Zealand have the ability to move. [Everyone] has to have access to mobility and freedoms – not just cars.”