While talking with Fleet News Group for the October issue of ALL THINGS FLEET, Toyota Australia Vice President Sales, Marketing and Franchise Operations, Sean Hanley, advised Fleet Managers to stay focused on fit-for-purpose vehicles as the New Vehicle Efficiency Standard (NVES) begins to reshape the market.
Supporting NVES, But Acknowledging the Challenge
Hanley was clear that Toyota supports the introduction of NVES.
“Our intent has always been to support new vehicle efficiency standards,” he said. “It gives us certainty about what we need to produce and bring into the next years.”
But he cautioned against underestimating the challenge. “NVES is real and it’s challenging. We shouldn’t mistake that. It’s not easy.”
The Fleet Buyer’s Question: Will Vehicles Disappear?
Fleet managers often worry that NVES will mean saying goodbye to familiar models such as HiLux and LandCruiser. Hanley’s response was unequivocal.
“You’ll continue to have LandCruisers. You’ll continue to have HiLuxes. You’ll continue to have Prados, HiAces, LandCruiser Utes,” he said. “We’re going to continue to bring them in. We will evolve our technology to bring electrified options that are practical and fit for purpose for Australian customers.”
Managing Penalties and Credits
Under NVES, manufacturers will balance credits from low-emission models against penalties for higher-emission vehicles. Hanley said Toyota is working within its product line-up to manage this.
“Our plan is to maximise our credits, minimise our penalties or offset within our own product portfolio,” he said. “That’s our first priority, and we’ve got a couple of years to get that right.”
If those balances don’t fully offset, fleets may see some impact. “You couldn’t rule out some price increases,” Hanley said. “If you can’t offset your penalties with credits, there are other ways, but you may have to pass some of it on. No manufacturer could honestly sit here right now and say there’d be no price increases.”
Competitive Market Keeps Pressure On
Even with NVES costs in the mix, Hanley stressed that Toyota — and every other OEM — still faces intense competition in Australia.
“This is a super competitive market,” he said. “It’s not an easy equation to just say, ‘I’ll put the price up’. Market forces will largely dictate how far anyone can go with that.”
Advice for Fleet Managers
Asked what fleets should do in their planning cycles, Hanley was direct.
“I would say to fleet customers: buy the cars you need,” he said. “Stick to the fundamentals of fit for purpose. OEMs are going to be forced to bring vehicles that are fit for purpose and that decarbonise.”
For some fleets that will mean BEVs. For others, hybrids or plug-in hybrids will remain more suitable. “A BEV is not necessarily going to be the car for every fleet,” Hanley said. “That’s why we’ll continue to offer options across different technologies.”
The Takeaway
For Fleet Managers, NVES won’t make fit-for-purpose go away. HiLux, LandCruiser, HiAce and other workhorses will still be available — increasingly with electrified drivetrains. Pricing pressures may emerge in the medium term, but Hanley says Toyota’s focus remains on delivering reliable, practical solutions that work for Australian fleets.
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