Organisation Overview
Sustainability at the core of Toyota New Zealand’s strategy
Toyota New Zealand has been distributing Toyota and Lexus vehicles in New Zealand since 1966, supplying mobility solutions to customers nationwide through its network of more than 60 locally owned Toyota Stores and nine Lexus Dealerships. One in four vehicles on New Zealand roads is a Toyota, so as one of the leading car brands in the country, they recognise the impact and opportunity they have to make a difference.
Its national operations are anchored in Palmerston North, where the National Customer Centre (NCC) brings together parts distribution, training, service and customer support, complemented by a dedicated training facility in Manurewa, Auckland.
Sustainability is central to Toyota New Zealand’s business strategy and long-term vision. The company is committed to reducing its environmental impact while supporting New Zealand’s transition to a low-carbon transport system. Toyota New Zealand has adopted a multi-pathway approach to decarbonisation, offering a broad range of powertrain options including hybrid, plug-in hybrid, and battery-electric to meet diverse customer needs across urban and regional New Zealand.
The impact
Driving down emissions across operations and vehicle lifecycle
Achievement | Explanation |
82% of new vehicles sold are electrified | Electrified vehicles here are defined as using an electric motor and battery alongside, or instead of, a traditional engine. This includes:
This stat includes both Toyota and Lexus vehicles. |
30% reduction in operational emissions | Operational emissions are direct emissions from Toyota sites, specifically Scope 1 and 2 for the NCC, TGRNZ, Thames Vehicle Operations and their Auckland site. It also includes Scope 3 Emissions from Franchises. It excludes Toyota Financial Services. Baseline year is 2019. |
In 2022, Toyota New Zealand became the first automotive company in New Zealand to include full vehicle lifecycle emissions in its emissions-reduction targets. This means they are looking at the emissions from every vehicle from factory through to disposal (including materials, manufacturing, vehicle assembly, driving, maintenance and distribution). This decision was unprecedented within New Zealand’s automotive industry and was a significant step forward given lifecycle emissions from the vehicles Toyota New Zealand sells account for approximately 96% of its total emissions (comprised of 73% tailpipe emissions and 23% from the manufacturing of the vehicles abroad). The move coincided with strong sales performance of electrified vehicles, demonstrating that emissions ambition and commercial success could progress together.
82% of all new Toyota and Lexus vehicles sold in New Zealand during FY25 were electrified. Despite the difficult economic conditions for automotive retailing in New Zealand during 2025, sales of new and used hybrid vehicles continued to increase having a positive impact on the electrification of the product mix. While hybrids still rely on an internal combustion engine, their significantly improved fuel efficiency and reduced tailpipe emissions mean they deliver better environmental benefits over the lifetime of the vehicle. This shift reflects Toyota New Zealand’s commitment not only to managing its own organisational footprint, but also to reducing the lifecycle emissions of the vehicles it sells. Customers are enabled to have lower emissions every time they drive, compared to a traditional petrol or diesel model.
This sits alongside Toyota New Zealand’s 30% reduction in operational emissions since the 2019 baseline, reflecting a holistic approach to reducing both organisational and lifecycle impacts. To reduce emissions across the organisation, they have transitioned all sites to carbon‑neutral electricity, accelerated electrified sales, increased waste diversion from landfill, and introduced innovative pilots such as directly landing pre‑sold vehicles in the South Island.
Toyota Stores and Lexus Dealerships also play their part: all are Toitū Enviromark Diamond certified and actively manage their impact on the environment. This certification looks at the Environmental Management System’s the dealerships have in place to manage environmental risks and opportunities. Enviromark Diamond specifically is a standard exceeding international requirements by going beyond ISO 14001, and is for businesses who already have sustainability embedded into their operations and are looking to innovate.
A wide range of environmental management projects are underway, from partnering with fuel suppliers who hold leading sustainable fuel formulations that use second generation biomass, to ensuring car wash machines are able to reuse water. Toyota New Zealand also support local tyre and battery recycling initiatives.
They invest in these efforts to show Toyota customers and partners that they are moving beyond compliance and best practice and demonstrating Toyota’s position as a leader in sustainability.
Strategic Partnership
A partner for credible, long-term climate leadership
Since 2015, Toyota New Zealand have partnered with Toitū Envirocare to ensure its climate commitments are credible, measurable and aligned with both business strategy and brand values. Toyota New Zealand recognised the importance of independent verification to validate the ambition and robustness of its approach. The commitments are underpinned by Toyota’s Let’s Go Places brand vision, which focuses on environmental sustainability, mobility for all, and community service. A key motivation was the need for tangible measurement and accountability. The frameworks and annual audits performed by Toitū enable Toyota New Zealand to accurately measure Scope 1, 2 and 3 emissions, track progress against emissions-reduction targets, and continually improve data quality over time. This has supported informed decision-making, including accelerating vehicle electrification and accounting for embodied manufacturing emissions, even where this has increased short-term complexity.
The partnership also provides credibility and leadership in a highly scrutinised sector. Independent verification through Toitū strengthens trust with Toyota’s customers, partners, and communities, reinforcing Toyota New Zealand’s position as a responsible and transparent market leader.
Client quote
"Toitū Envirocare is a valued partner for Toyota New Zealand in accurately setting its emissions reduction targets and verifying the metrics behind its goal of not only on delivering great vehicles but also creating a better future for New Zealand. Accurate measurement and independent, third-party verification reinforce the trust we have built with New Zealanders, through our people and our Stores – their customer-first approach, the community work they do, and the ultimate dedication they have to Toyota. It reaffirms our commitment to sustainability."
Assistant Vice President Marketing, Sustainability and Technology, Susanne Hardy
Interested to hear more?
Explore more about Toyota New Zealand’s sustainability efforts in their Sustainability Report 2025. You can find their electrification pathway on page 20 and path to neutrality on page 22.