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Our Value Chain

We take a value chain view to identify and manage the impacts and opportunities linked with the life cycle of our products and services. TNZ operations centre on sales, marketing and the distribution to retail outlets, but we also consider activities ‘upstream’ (material extraction, suppliers, production) and ‘downstream’ (customer use, product recycling and disposal) of our business.

This aims to create value for our business, consumers, partners and suppliers, and reduce negative environmental and social impacts. The value chain approach shows that many of the biggest impacts from our business activities occur outside our direct control, and we need to collaborate, influence and develop stronger partnerships with suppliers and the wider industry.

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1. Design

Toyota Motor Corporation (TMC) designs vehicles which appeal to customers, while satisfying safety and environmental regulations. Significant investment in innovation and research enable Toyota to be at the forefront of current and future advances in mobility technology.

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2. Raw Materials Extraction

Raw materials and parts are sourced from many countries and suppliers. TMC focuses on opportunities to substitute natural resources by recycling and reconstituting materials from end-of-life cars, and developing less harmful materials such as bioplastics.

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3. Vehicle Manufacturing

Toyota and Lexus vehicles are manufactured in 16 plants in Japan, and in 67 countries by fully owned subsidiaries. This means TMC can influence the sustainability performance of these facilities with cleaner and more efficient production methods.

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4. Product Planning

Toyota New Zealand (TNZ) determines the appropriate vehicle mix for New Zealand customers. The majority of vehicle parts come from overseas, but our team also work with local suppliers to select parts and accessories most suitable for our market.

We plan our product over a three to five year time horizon, working with TMC to understand the product that is available, and matching that to our market and customer’s needs

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5. Shipping and Logistics

Vehicles and parts are sourced from Japan, Thailand, Austria, the United States and New Zealand. Vehicles are shipped to our logistics hubs in Auckland, Wellington and Christchurch; parts are freighted to Auckland, Napier, Tauranga, Wellington and Christchurch.

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6. Processing and refurbishment

New vehicle accessorisation and used vehicle refurbishment is undertaken at our Auckland and Thames facilities. Used vehicles are sourced from Japan, and ex-lease and ex-rental vehicles from our New Zealand fleet customers.

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7. New Zealand Distribution

Our distribution partners work with us to move vehicles (by road) and parts (by road, rail and air) to Toyota Stores and service centres.

Vehicles and parts are distributed by the Car Distribution Group and Post Haste Couriers respectively.

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8. Marketing and Sales

TNZ promotes the Toyota brand locally, and the primary sales channel is a nationwide network of authorised Toyota and Lexus retail Stores, which sell directly to individual customers (approximately 72% of all sales). Both Stores and TNZ sell to national fleet buyers (approximately 20%), which include rental car companies and government entities.

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9. Use

There are more than 923,000 Toyota* vehicles on New Zealand’s roads that generate greenhouse gases and air pollution when driven. Many customers are keen to select fuel-efficient and low-emission models, and we secure as many hybrid vehicles as we can from TMC’s global production allocation. (* includes Toyota, Lexus and Daihatsu)

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10. Servicing

Vehicles spend many years on the road, and regular servicing helps maintain performance and safety. Stores provide servicing for our direct customers and other Toyota vehicle owners. TNZ also supports customers with queries through the Customer Dialogue Centre in Palmerston North. Parts and service providers are independent businesses under the responsibility of the local Store.

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11. End of Life

TMC mitigates some environmental impacts through its vehicle design and life cycle analysis, which enables around 99% of vehicle materials to be re-used. The complexity of modern vehicles and the lack of bespoke recycling infrastructure mean cars sold by any company in New Zealand don’t achieve their full recycling potential. This remains an important issue for the whole industry.