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.
- Yoogo Fleet Launches Automated Servicing Platform
A new digital servicing tool developed in New Zealand is aiming to reduce one of the most persistent operational challenges for Fleet Managers — keeping vehicles serviced, compliant and on the road without creating additional administrative workload. Yoogo Fleet has launched Digital Concierge, an automated fleet servicing platform that uses real-time telematics data to predict maintenance - New Zetifi Platform Turns Fleet Safety Data Into ActionZetifi has launched a new Connected Fleet Safety platform designed to help organisations manage driver safety and workplace health and safety (WHS) risk by linking telematics, AI video and Microsoft 365 workflows into a single operational process. The platform combines Geotab GO9 telematics, Geotab GO Focus Plus AI-powered video and Microsoft 365 workflows with Zetifi’s
- Integration is no longer optionalWhy visibility, orchestration and AI will define the next phase of transport efficiency By Luke Olsen, Managing Director, APAC at Microlise In conversation with transport leaders at the recent executive event series hosted by Microlise, titled The Road Ahead, one theme kept coming up: the drive to increase profit margins and lower operating costs, while improving
- Why Lodging Every Incident Matters — Even If You Don’t Repair ItIn many fleet environments, incident reporting is closely tied to repairs and insurance claims. If the damage is serious enough to require immediate attention, it gets logged. If it is minor and the vehicle remains roadworthy, it is often overlooked or handled informally. While that may seem efficient in the short term, it creates significant
- Five steps to better fleet managementManaging a fleet is about more than choosing the right vehicles. Strong fleet performance comes from a combination of planning, maintenance, driver behaviour and operational support. When these elements work together, organisations can improve safety, reduce costs and keep vehicles operating efficiently. The following five steps outline practical ways fleets can improve performance, with support
