New energy LCVs, 4x4s a challenge: Toyota
BY MATT BROGAN | 25th Nov 2024
THE new Toyota LandCruiser Prado is certainly generating a lot of interest among SUV and off-road-centric buyers; and although it is now now equipped with 48-volt mild hybrid assistance and a cleaner AdBlue enabled turbo-diesel engine, the model is a long way from being considered environmentally friendly.
According to Toyota, the reasoning here is simple – and it all relates to customer demand.
Speaking with local media gathered for the launch of the fifth-generation Prado in Darwin, Toyota Australia vice president of sales, marketing and franchise operations Sean Hanley said it was important new energy vehicle technologies were balanced with customer demands, particularly in segments where towing, payload, and range were of priority.
“The thing that enables Toyota Australia to provide such a wide variety of vehicles is of course our multi-pathway approach to vehicles and powertrains,” he said.
“It’s an approach that is driven by customer demand and based on our commitment to continue providing mobility to all, leaving no-one behind, on the journey to decarbonisation … and if we need an example across the industry, then take a look a hybrid sales.
“Hybrid sales have almost doubled this year and for Toyota, now account for almost half our sales (49.2 per cent). Of course, we already know that’s been led by RAV4 … and earlier this month we sold our 100,000th hybrid of the year. That’s a first for us, and a first for the industry.”
Mr Hanley said it was clear that customer demand was behind the uptick in hybrid sales, proving, he says, that the technology is right for the market.
“There is no doubt in the mind of Toyota that this is the market speaking. Customers are telling us they are willing to take steps toward lower emissions vehicle where they are practical, where they are capable, and of course – and more importantly – where they are affordable,” he emphasised.
“On that score, and as we are very much on record as saying, full battery electric vehicles do not meet the requirements of all Australian customers, at least not for now.
“Nor are BEV sales growing at a pace that some would have had us believe over the last five years. Having said that, please do not misunderstand Toyota’s position in relation to BEVs. Giving voice to those marketing truths does not mean we are opposed to BEVS.
“BEV sales, I have no doubt, will continue to grow, despite what you might be seeing in the market right now. They will become an increasingly important part of the automotive landscape.”
Mr Hanley said that much like hybrid vehicles, the acceptance of battery electric vehicles in the market will take time to grow, and that importers must focus not only on the vehicle itself, but on customer education, affordability, and infrastructure moving forward.
“People want driving range, they want access to charging infrastructure, lower recharging times, lower prices, and longer battery life – that is the market truth,” he stated, adding that the requirements of many SUV, utility, and four-wheel drive customers do not currently mesh with those demands.
“SUVs and utes remain the vehicles of choice for around 80 per cent of car buyers in Australia today. In October, the top 10 sellers were all medium or large (segment) SUVs, showing again that the market is speaking.
“The LandCruiser Prado is the perfect example – the excitement among customers for this new range is more intense than even what I saw for the first-generation way back in the 1990s.”
And while that excitement might hold Toyota’s market position for now, it’s clear that incoming NVES regulations will compromise the popularity of models like the LandCruiser Prado in the years ahead.
Diesel and petrol-powered vehicles will become less attractive to buyers as tax incentives shift; the LandCruiser range likely to face price hikes as Toyota works to balance the CO2 emissions of its heavier polluters against its hybrid and electric models.
Attending the press conference via video chat from Japan, Toyota Motor Company chief engineer Keita Moritsu said Australia will stick with the 48-volt assisted turbo-diesel offering for now, ruling out a shift to a petrol-electric hybrid or battery electric offering.
“Carbon neutrality is important … but we cannot compromise on the capability of the LandCruiser Prado,” he said.
“At the moment, I believe that the 48-volt (mild hybrid system) is suitable for this market. But I would like to monitor customer demand and consider other technologies into the future.”
