CEO attacks clean-car calls

Toyota New Zealand’s chief executive officer has voiced his disappointment at the government’s recent axeing of the clean car upgrade and a car-leasing scheme, describing the move as a “huge mistake”.

Neeraj Lala, pictured, warns Prime Minister Chris Hipkins’ decision to ditch the policies will lead to older vehicles staying on our roads for a couple of years longer than would be the case if a scrappage scheme was in place.

Speaking at the local launch of the GR Corolla, the Toyota boss also said that while the clean car discount (CCD) has supported the transition to electric vehicles it has been a “fail” when it comes to financial sustainability, reports Stuff.

The government announced on March 13 the clean car upgrade and a proposed social-leasing car scheme were being cut from its plans, with the savings being redirected towards tackling cost-of-living pressures.

Lala said the upgrade scheme, essentially a cash-for-clunkers policy, was “going to be a rock star”. It would have allowed people to make the move from an old car to a low-emissions one “but instead that old car is going to stay on the road for a couple of years longer”, he added.

He also rued the end of Waka Aronui, a community-based car-leasing scheme that Toyota had been involved in since its launch in May 2022.

“We’ve recently heard announcements from the government towards abandoning innovative car-leasing schemes and car-share solutions, and we believe that is a huge mistake. A huge mistake,” said Lala.

He also expects changes to the CCD will happen soon, predicting rebates will only apply to battery electric vehicles and plug-in hybrids, with traditional hybrids and low-emissions combustion vehicles missing out, reports Stuff.

As for the clean car standard, Lala expects it is going to cause price rises across the market.