Toyota defends HiAce price hike

Toyota Australia has defended the pricing of its 2019 HiAce, a vehicle that uses an all-new platform, enhanced safety, handling, performance and technology.

Pricing for the new sixth-generation HiAce has risen by just under $4000 on average over its predecessor. However, at the national HiAce media launch – held recently at Toyota's new Centre of Excellence in Altona, Melbourne – senior Toyota executives were quick to downplay the hike, instead emphasising the HiAce's favourable whole-of-life costs.
All details and  impressions from our launch review of the new 2019 HiAce are here.

According to Sean Hanley (lead picture), Toyota Australia's vice president of sales and marketing, the gains made in areas like fuel economy combined with the HiAce's strong resale value add up to a very competitive offering over the longer term.

"When you look at the mix of sales of HiAce, traditionally there's a very high level of fleet and or/business ownership, so therefore rather than looking at a recommended retail price position, we look very much at whole-of-life position," he said.

"So that's fuel efficiency, resale value, and in fact if you look at our calculations on whole-of-life cost over four years, I think it is, the weekly payment increases by $4. We think we have a very compelling whole-of-life cost that will appeal to fleet owners."
Fleet focus

Toyota Australia says fleet sales account for 75 per cent of all HiAces sold. The nameplate dominates the Australian mid-size van (2.5 to 3.5 tonne GVM) and mini-bus (under 20 seat) segments. At the close of 2018 the model achieved a 33.9 per cent market share of the mid-size van market here, along with a stranglehold of 86.3 per cent of the mini-bus niche.

Toyota Australia's product planning and pricing senior manager, Bernard Nadal, said HiAce customers typically prioritise any prospective model's total cost of ownership over its outright purchase price.

Read a 2019 Toyota HiAce Review

"Our customers who buy these vans are, we feel, less sensitive to the absolute price point but more focussed on the total life cost of ownership, and we've got a great plan in place about how to minimise any cost increase on a dollar per week basis," he said.
Mr Nadal said the brand's 'Guaranteed Future Value' scheme would help override concerns regarding the rise for many.

"For a buyer in New South Wales who goes through Toyota Access on a 48-month plan, we will be cheaper than a competitor in the order of $35 per week," he said.

The new HiAce eschews the old cab-over-engine format for a semi-bonneted design, increasing most of the platform's key dimensions but also ushering in a range of benefits, such as ease of cab access, improved driver ergonomics and safety, better maintenance access, enhanced sound insulation and improved on-road dynamics.

New too is the drivetrain selection, with a 2.8-litre four-cylinder turbo-diesel (up to 130kW/450Nm) and a 3.5-litre petrol V6 (207kW/351Nm) replacing the predecessor's 3.0-litre four-cylinder turbo-diesel and 2.7-litre four-cylinder petrol engine. Power continues to be fed to the rear wheels, now via a choice of a new six-speed manual or six-speed automatic transmission.

The new HiAce range spans a total of nine variants and two wheelbases: long wheelbase (LWB) and super long wheelbase (SLWB). The model is offered in Van, Crew Van and Commuter (mini-bus) guises.

The new HiAce line-up has increased by $2880 for the SLWB Van (diesel/auto) up to $5020 more for the LWB Crew Van (diesel/auto), while the range flagship – the SLWB Commuter GL –tops out at $70,140 plus on-road costs.

How much does the 2019 Toyota HiAce cost?
LWB Van 3.5-litre V6 petrol 6MT – $38,640 (+$4170)
LWB Van 3.5-litre V6 petrol 6AT – $40,640 (+$3110)
LWB Van 2.8-litre turbo-diesel 6MT – $42,140 (+$4610)
LWB Van 2.8-litre turbo-diesel 6AT – $44,140 (+$4060)
LWB Crew Van 2.8-litre turbo-diesel 6AT – $47,140 (+$5020)
SLWB Van 3.5-litre V6 petrol 6AT – $48,640 (+$2950)
SLWB Van 2.8-litre turbo-diesel 6AT – $52,140 (+$2880)
Commuter 2.8-litre turbo-diesel 6AT – $67,140 (+$4110)
Commuter GL 2.8-litre turbo-diesel 6AT – $70,140 (new model)

In addition to its new platform, with increased leg and head room, the 12-seat Commuter GL adds niceties like leather-accented upholstery, passenger USB charging ports, and dedicated HVAC (heating, venting and air-conditioning) points.

Offsetting the rise is an increase in fuel economy of up to 8.7 per cent, with that figure applying to 2.8-litre turbo-diesel models with six-speed automatic transmission. That variant also happens to represent the bulk of HiAce sales on a variant-by-variant basis.

"That's the sweet spot for the van market for us, not just for us but for the segment," said Nadal, with the diesel auto representing about 35 per cent of total HiAce van sales.

The economy gains don't extend to models powered by Toyota's 3.5-litre V6 petrol engine, where the Combined Cycle figure now up to 12.4L/100km, compared to 10.9L/100km for the predecessor's 2.7-litre four-cylinder petrol engine. The V6 does, however, offer a major boost in output, dishing out an extra 89kW and 108Nm.

While kerbside weights have increased by the order of between 315kg and 415kg, load space remains similar to the outgoing model, with Toyota claiming 6.2 cubic metres and 9.3 cubic metres for the LWB Van and SLWB Van respectively. Payload limits remain the same, says Toyota, as does the HiAce's six-month/10,000km service intervals.

Of course, after 15 years in the making, the new platform brings with it a substantial leap in technology, and especially safety technology. Now with autonomous emergency braking with pedestrian and cyclist detection, lane departure warning with steering assist, blind spot monitoring, rear cross traffic alert, speed zone recognition, auto high beam and more – all as standard – the HiAce is Toyota's first van to achieve a full five-star ANCAP safety rating.

"We don't like increasing our prices but we think the price is suitable for the value that is delivered to the customer," said Nadal.

"Through some pretty effective partnerships with Toyota Financial Services and with our Toyota product, we think we're pretty competitive."