Lexus IS: Niche is still necessary

The significantly refreshed compact sedan arrives later this year.

WITH only 63 registered in 2019 and just another 16 to date this year, the Lexus IS surely stands as a classic example of how interest in even sports sedans is waning.

 That diminished support has already been the death of its big brother; Lexus signalled earlier this year that production of the next-size-up GS for NZ ends in August. And that car achieved much the same penetration as the IS.

 Accordingly, it wouldn’t have been too much of a surprise, perhaps, had this week’s announcement of a big update for the IS been tagged with local market notice of a change of heart. Indeed, had NZ abdicated the IS it would be following the United Kingdom, which has determined not to continue with the car.

 Yet clearly there’s an optimism here that compels Lexus New Zealand to keep the white flag stowed.

In a statement timed to synch with the update’s global unveiling from the United States, it has sworn not only ongoing allegiance to the brand’s smallest rear-drive product but also continued enthusiasm.

Says Lexus New Zealand General Manager, Neeraj Lala: “With its Lexus driving signature, and performance enhancements, it is a true enthusiast’s car.”

So, what be expected of the latest edition when it arrives toward the end of the year? Basically, a lot of new, but also not a complete change.

What’s being described as the fourth-generation model is, in reality, a big makeover. A number of fresh technologies, improved dynamics and a complete overhaul of its dramatic styling place atop the same platform as the existing model and existing powertrains continue.

As is appropriate, the front end is still marked out by a large ‘spindle’ style grille, but the headlight units are more compact than before and feature a strong LED running signature slashing from corner to corner. 

The rear end is a complete revision: A new L-shaped tail light is joined by a full-width LED lighting bar, while Lexus talks of the car being more a ‘four-door coupe’ in profile than what we see now. Stronger rear shoulders are emphasised by the pronounced boot lid, too, while the whole car is 30mm longer. 

F-Sport versions receive a different mesh pattern on the front grille, and additional front air intake, exclusive 19-inch wheels, a bootlid spoiler and can be had in the Radiant Red paint colour used on the LC coupe.

These in particular sit lower and wider and look more ‘pumped’ than the current F-Sports. 

The interior is a mix of old and new. The central vents, gear selector, centre console and steering wheel appear to have been broadly carried over with minimal changes. The floating touchscreen infotainment system, 8.0 inches standard or 10.3 inches optionally, is new, replacing the sunken screen in the old car

Lexus says this IS is stiffer than the present offer thanks wider tracks, an increased number of front side-member weld points and a process of “optimising structures from the rear-quarter pillars to the sides of the roof, among other areas”. This, combined with a lower centre of gravity, boosts the model’s agility and lends a particular emphasis on steering response and feel.

Engineers have given the suspension a rework, too, with the new generation featuring new swing-valve shock absorbers to enhance the ride quality.

Powertrain options include the familiar 2.0-litre four-cylinder turbocharged petrol engine, 2.5-litre petrol-electric hybrid and 3.5-litre V6, all carried over from the current series with a few unique mapping tweaks to increase responsiveness.

The 2.0-litre turbo now features “enhanced adaptive control”, resulting in quicker and more decisive gear selection through the carryover eight-speed automatic transmission.

The hybrid has been treated to increased throttle response, while the V6 appears to be little changed. Lexus says full details will be confirmed closer to launch.

For reference, the current 2.0-litre produces 180kW/350Nm, the hybrid makes 164kW – Lexus does not quote a combined torque figure for the hybrid – while the V6 churns out 233kW/376Nm.

Full equipment levels have yet to be confirmed, although Lexus has made a point if referencing standard fitment of Apple CarPlay and Android Auto.

The Lexus’ Safety System Plus suite has also been upgraded.

Prius no hit but still a stayer

Latest sales returns remind Kiwi love for hybrids is cemented .. except when it comes to the car that introduced the world to this tech. The Prius’s battery charge is all but depleted.

No question about the rav4 hybrid … Toyota’s most popular model in may, when the market was down overall, is still subject to a waiting list.

IS time just about up for the Toyota Prius?

Actually, it’s a not a new question. This poser has been relevant since at least 2015.

That’s really the first year when it became obvious that the hatchback that 25 years ago introduced motorists to the bright new world of electrified motoring was not doing at all well, at least in New Zealand-new form.

Which might seem crazy because, of course, as much as Prius appreciation has been falling away, our hybrid penetration has been ramping up, and quite considerably. And when it comes to favourite battery-assisted products, they’re all from the same brand: Toyota.

So, really, as much as the Prius has been on losing streak, the fact is that Toyota New Zealand has been winning. Really, then, the original hybrid car from Japan’s No.1 looks to be a victim of its own success. It has simply spawned development  of so many other Toyota hybrids at its own expense..

New Zealand new vehicle registration figures for May show that just two Prius and 10 of the smaller Prius Cs were sold during the month, way down on sales achieved by other Toyota hybrids – 413 RAV4s, 127 Corollas, 85 C-HRs, and 20 Camrys.

And year-to-date hybrid registration figures make just as depressing reading for the model. They show just 96 Prius and Prius C have been sold so far in 2020. Compare that to 1239 RAV4s, 431 Corollas, 246 C-HRs and 152 Camrys. Not only that, but various ‘H’ versions offered by Toyota’s luxury cousin Lexus have achieve a combined total of 187 registrations so far this year.

current prius has struggled since launch in 2016 and its predecessor was a falling star, too.

How does that compare to back in 2015 and prior? Well, it was a slightly different structure then, when Prius was a bigger family, including the V people carrier then. By chance, MotoringNZ owner Richard Bosselman happened to have written  ‘a what chance for Prius?’ story back in 2016, in which the data was presented.

According to the NZTA information cache from that period, in 2015 the C achieved 367 sales – whereas Prius hatch took just 30 (and the V 11). The preceding year was stronger for the hatch, with 121 units (against 287 C and 3 V), 549 in 2013 (no count for C, 55 for V) and 473 in 2012, a period when only the hatch was available. The was all collated because Toyota at that time was about to launch not only the fourth generation (aka ‘4G’) hatch we have now but also a car that seemed to do all Prius could, but in more acceptable form: Corolla hybrid. And, yet, five years on, the Corolla and Prius co-exist still. Who’d have picked that scenario?

Given all latest statistics continue to add up to a sad time for the iconic Prius, which earlier in its career was so new-age that it was the green vehicle of choice for everyone from Hollywood movie stars to politicians., the question obviously still seems reasonable. But TNZ is steadfastly true.

The hatch’s story began back in the early 1990s when Toyota Motor Corporation decided to attempt to develop a car that would have up to twice the fuel economy of its big-selling Corolla. The project culminated in the the brand’s first petrol-electric hybrid, a prototype Prius unveiled at the 1995 Tokyo Motor Show – the name, appropriately, a Latin word for “first” or “to go before”.

The model sure was a first.  With its Hybrid Synergy Drive system and battery pack that combined forces with a conventional petrol engine to achieve vastly improved fuel economy, it opened the way for electrified motoring well before fully electric motoring could begin to become economically possible.

The first-generation Prius, a four-door sedan, was launched in Japan in 1997. Toyota New Zealand introduced the second-generation model, a slightly geeky-looking five-door hatch, in 2003. Since then close to 6000 of them have been sold new here, their owners appreciating the superior fuel economy and reduced exhaust emissions that come from combining the self-charging electric motor and petrol engine.

arrival of Corolla in hybrid format could have been the end of Prius … but it wasn’t.

But now it seems the Prius’ job is done, leaving it up to more conventional-looking Toyota models to further the career of the hybrid passenger vehicle.

Those models – RAV4, Corolla, C-HR and Camry – are doing very well, too. Last month the hybrids accounted for 77.4 percent of all RAV4 sales, 68.6 percent of Corolla, 70.2 percent of C-HR and a remarkable 90.2 percent of all Camry sales.

The overall Toyota performance led the way in a stellar month for hybrids,  which saw them jump from around 4.3 percent of all new vehicle registrations in the opening four months of the year, to 13.3 percent in May. Compare that with the penetration achieved by electric vehicles – the models that mains-replenish – which was 0.94 percent for plug-in hybrids and 1.07 percent for full electrics.

While other hybrid product such as the Kia Niro and Hyundai Ioniq, have contributed to all of this, by far the biggest contribution has been from the Toyotas. 

But obviously the Prius, the model that started it all for hybrids, hasn’t figured much at all in this success. So what does this mean for the future of the car? Will it be retired?

Internationally, one opinion among the international media is that the Prius name is too iconic to be completely retired, so it may be saved by TMC for use on a future battery electric vehicle.

TNZ chief operating officer Neeraj Lala says he hasn’t heard any official word relating to the future of Prius.  That doesn’t worry him; he’s happy to see the model continue to remain on sale in New Zealand for those who want it – and he reminds that it is very popular as a taxi.

“More to the point is that Prius is the Toyota model that introduced hybrid motoring to New Zealand, and in that regard it has been a success,” he says.

“Look where Toyota is now. We have hybrid versions of almost all our passenger vehicles, and we will soon be adding to that – hybrid versions of the new Yaris and Yaris Cross, the Highlander larger SUV, and in around 18 months we’ll also get a hybrid version of the Hilux ute.”

CH-R in hybrid form would seem to provision a better kind of Prius … that it is also tracking strongly suggests the market recognises this.

Loan scheme gives new life to ghosts

Recipients of Highlanders loaned by Toyota as a small business assistance won’t need to run them in. That’s been well and truly taken care of.

 LOANING cars to struggling businesses potentially helps the country’s biggest brand ease a headache Covid-19 might hardly improve.

Toyota New Zealand’s intent to provision 100 Highlander sports utility vehicles to small businesses nationwide for a year’s free usage comes with a caveat it has been happy to discuss. To a point.

Though current models, small print with the Small Business Driver package clearly relates the 3.5-litre V6 seven-seaters in mid-level GXL trim are not as might be imagined: Brand-new examples of this $58,490 car.

What’s on offer is stock first registered in 2018 and likely to have 30,000km to 45,000km on the clock, apparently accrued from toting tourists. 

Plucked from the in-house Signature Class used vehicle processing programme, the Highlanders are from what is perceived within the broader industry to be a massive count of vehicles laid up in what could be called TNZ’s ‘ghost fleet’.

Which is? A raft of mainly ex-rentals the market leader has acquired through buy-back agreements far less common now and then parked up for months … perhaps years.

This the result of TNZ having been unable to push them through used car channels en mass, for fear of causing a glut that might collapse used car prices. 

Instead, they sit inactive in what has been derisively called, by rival brands, a ‘rental swamp’. Holding yards and warehouses. Some there for so long that – according to talk - registrations have retired, batteries depleted and tyres squared.

Industry lore relates enough vehicles are in a limbo to likely be costing the brand many thousands of dollars annually in upkeep and storage fees. Can that be true? 

TNZ has been asked on numerous occasions, including during compilation of today’s story, to offer clarification. Every request has been met the same way. With silence.

As much as chief executive officer Neeraj Lala was happy to share his enthusiasm about the loan scheme – which is, beyond doubt, a very generous opportunity – he declined to deal with a host of follow-up questions relating to the cars’ provenance and the state and size of the stockpile. 

The finer details of what’s on offer currently were passed on by a potential applicant who, while a little surprised by the cars’ suggested histories, was not particularly perturbed.

“A free car is a very generous offer, no argument. As it turns out, I don’t qualify because another of the stipulations is that you have to be a recipient of the Government’s wage subsidy, but it’s a good concept.”

An industry involver spoken to subsequently also thought the idea was interesting.

“It’s a rental swamp and the swamp needs draining ... this is what has to be done.

“They’re probably not making anything on it. But it at least gets some vehicles back on the roads and free of storage fees that, while quite cheap on a per day per car basis, soon adds up to a chunk of change when you’re talking big counts for long term.” 

‘Buy-back’ was said to be a core ingredient of when Toyota basically sought to corner the national fleet business, which some years accounts for up to 80 percent of new car sales. 

Since 2018 TNZ has sought to swing its focus back to private buyers with its Drive Happy programme that aims for fair pricing and says it has detuned the intensity and scale of its fleet push.

Even so, it still agrees to discount to large-scale purchasers and, as a glance around any airport carpark (at least pre-Covid) would confirm that, while other brands have come back into hirer circles, there are still a lot of Corollas, Highlanders and RAV4s behind those rental placards.

And 2018 appears to have been the last big year, with industry statistics showing 1660 Highlanders having gone into rental, whereas just 179 followed last year. The majority were GXL variants. 

Now, of course, there’s coronavirus, which has certainly dented the car trade and is doing those brands supplying rental providers no favours.

Distributors have been pressured to take back stock – often in as-new condition - now standing idle and waive delivery of incoming product.

That’s a big ask: June has historically been a big month for rental car fleet replenishment to cope with the tide of winter tourists. TNZ indicated recently it is challenged by this; it doesn’t want to upset core corporate clients, but neither can it afford to assume responsibility for pre-agreed consignments.

With the Highlanders, it’s not quite a matter of first in, first served: Only small businesses with fewer than 20 employees are eligible and applicants are vetted by a selection panel.

The scheme has been created in conjunction with MediaWorks, and includes a share of $1 million of advertising with the media company for successful applicants. 

Those interested in applying have until 11.59pm on June 9 to apply. 

Perhaps, at the end of the exercise, users might receive tasty opportunity to purchase the vehicles outright.

Of course, they have to weigh up the deal against the fuel costs. The V6’s taste for petrol is a core reason why the next-generation Highlander, coming next year, will only be offered as a four-cylinder hybrid.

TNZ confirms Highlander in hybrid only

The V6 has served its purpose, but from now on petrol-electric efficiency makes more sense, distributor says.

EVERYTHING hinges on hybrid – that’s from Toyota New Zealand, in confirming today that the just-revealed next-generation Highlander will divest its V6 here and devote to petrol-electric purity.

Total commitment from TNZ to a new-to-type drivetrain that bumps a petrol V6 that continues in other markets and has been a mainstay here in the current and previous models is a safe call at the right time, local chief operating officer Neeraj Lala says. 

Pointing out that hybrids now account for one in three sales of new Toyota cars here, he said: “The introduction of another hybrid to our line-up further complements our focus on moving towards a low emission economy, while delivering our customers with a fuel-efficient large SUV.”

And that’s the whole point of the exercise. While the V6 models have been popular for their impressive power output, the engine has been increasingly tested to come up to speed in respect to economy.

That the current car has maintained healthy volume here has been increasingly due to its popularity as a rental car – where the seven-seat configuration lends favourability.

At same token, it has slipped in status with private buyers, to the point where Toyota and its fleet customers have found moving ex-rental stock into the used car forum a challenging exercise. All the more so, perhaps, now that the coronavirus crisis has destroyed tourism and thus forced operators into selling off stock.

“Toyota has now sold more than 15 million hybrid vehicles globally, including in excess of 17,000 in New Zealand,” Lala said.

"The all-new hybrid Highlander is the beneficiary of Toyota's global hybrid leadership, extensive experience in SUVs, and unrivalled reputation for quality, durability and reliability,"

On arrival in early 2021 the model will achieve immediate status as the first seven-seater hybrid SUV has had here with a Toyota badge – a distinction that separates it from the brand’s Lexus RX, which added a third row two years ago.
Married to a 2.5-litre petrol engine, it is of course a mild system – plug-in recharging has yet to enter the Toyota lexicon – and the cited total hybrid system power output is expected to be 179kW (whereas the new V6 has 218kW).  

The hybrid drivetrain marries to an intelligent AWD system that incorporates front and rear electric motors. The hybrid battery is located under the second-row seats.

The fourth-generation Highlander sits on the Toyota New Global Architecture GA-K platform, providing multiple benefits for dynamics, safety and styling, Lala says.

“The new Highlander is brand new from the ground up; a new platform for improved stability and handling, a new engine with class leading efficiency, new levels of safety and with a dynamic styling package.”

He says it will appeal as being “a significant improvement on the outgoing model, with improved efficiency and flexibility for families.”
Toyota says this has enabled engineers to develop a lightweight and highly rigid bodyshell with a low centre of gravity - features that provide the new SUV with nimble handling and comfortable driving around town and on the highway.

The new generation has advanced Toyota Safety Sense active safety technologies designed to help prevent or mitigate collisions across a wide range of traffic situations.

The new platform has also allowed designers to craft a longer, more distinctive body that delivers a more flexible interior with expanded cargo space and a more tailored ambience.

Toyota has sold more than 15 million hybrid vehicles globally.

Toyota all but disappears from rental action

Where are the rentals, Toyota?

LATEST new vehicle registration statistics from the Motor Industry Association indicate Toyota New Zealand has gone from dominating the national rental vehicle industry to barely figuring.

Last year more than 9000 Toyotas were registered as rental vehicles – an average of 750 a month.

  The dominant vehicles were the Corolla which took a massive 20 percent share of the rental sales with 3990 registrations, followed by the RAV4 (1963 registrations), Camry (809) and Yaris (751).

But so far this year, the Toyota brand has all but disappeared from the rental scene.

MIA statistics show just nine Hilux utes and seven Hiace vans were registered as rentals last month. Year to date to the end of March just 114 Toyotas have been registered – 80 of them Yaris hatchbacks, the remainder Hilux. Yaris is on runout with a new model coming soon.

Absent were Corollas, RAV4s, Camrys, Prados and Fortuners. All were dominant models in last year’s rental rego statistics.

Sources within the rental industry say it’s a direct result of a new Toyota New Zealand policy to not offer big discounts for bulk purchases of its product. This change would add to rental companies’ costs of holding Toyota vehicles in their fleets, so they have chosen not to buy them.

As a result, it’s now the Mitsubishi ASX that is the top-selling rental vehicle with 200 registrations so far this year, followed by the Holden Trax, Ford Ranger ute and the Suzuki Swift.

TNZ’s chief operating officer Neeraj Lala said the very low volume of rental sales is the result of the company slowly moving out of the rental business for the past two years.

“We’ve been reducing our rental volume in an effort to make our business more sustainable overall,” he said.

“Our strategy is to be a business with a full value chain, involving both new and used product. As our product has become more sophisticated, with a strong emphasis on low-emission hybrid vehicles, the cost of some of that product has gone up which has meant that some parts of the chain have become less viable.

“To deal with this, we won’t discount. That includes to the rental industry.” 

Despite Toyota dipping out of the rental sector, its product remains highly popular overall.

Last month the RAV4 was the country’s most popular passenger vehicle, with 318 of them registered in a sales environment hammered by the effects of the Covid-19 shutdown. And Corolla ran second with 240 sales.

But now, the company is anticipating very harsh trading conditions for the next few months because of the corona virus pandemic.

“As a result, we’ve asked our bosses in Japan to put our April shipment on ice for a month,” said Lala.

The implications of coronavirus for New Zealand’s tourism industry are dire; it appears increasingly likely that pain is going to also be felt by rental vehicles providers. Gaining comment has so far proven impossible, as major rental companies’ offices seem to be closed.

Yet some are suggesting it will be no surprise if there are far fewer rental operators by year-end than there are now.