They’re coming for your HiLux

The most recent TVC for the Toyota HiLux features a mid-30s couple sitting in a lawyer’s office diplomatically agreeing the custody of their beloved SUV. It’s a savvy reflection of just how enamoured middle-Australia has become with dual-cab utes. In a surreal twist of life imitating art, such communication may have influenced the narrative from the Leader of the Opposition, Peter Dutton, that the Government is ‘coming for your HiLux’. As reduced emissions legislation goes through parliament, the focus on one’s right to drive large, SUVs around major Australian cities will continue to heat up.

It doesn’t feel that long ago that the Toyota Corolla was Australia’s number-one selling vehicle. Around this time, both Ford and Holden announced they were ceasing local manufacturing due to ‘Australians not buying large cars’. The year was 2016, and a year later, the very last Holden Commodore rolled off the production line. Australia’s capability to manufacture vehicles for the local market reached the end of the road. Toyota, Ford and Holden all closed their assembly lines and the perception of South Australia and Victoria becoming rust-States set in.

Seven years on, Australians are embracing large vehicles like never before. The Ford Ranger, Toyota HiLux and Isuzu D-Max are now the top-selling three vehicles in Australia. This despite fuel prices being at substantial highs and a cost-of-living crisis the likes of which has not been seen in this country since the mid 1970s.

So, what’s causing us to purchase heavier, less fuel-efficient utes? The answer is complicated, but will become increasingly divisive in the lead up to the next federal election. In short, three factors have led to more SUVs and dual-cab utes winning the favour of Australian motorists.

In the aftermath of the GFC in 2008, the then Labor government introduced tax changes that made it easier for small businesses to claim the depreciation of a new vehicle. It was a useful measure and contributed to Australia avoiding the type of recession that enveloped most other OECD economies. Similar to many stimulatory fiscal measures, though, it should have been removed once the economy stabilised. This didn’t happen and ‘today’s favour became tomorrow’s obligation’ for future governments. For many Australians, the favourable tax treatment of SUVs has made them more affordable.

The second factor leading to growing SUV popularity is their increased size. The latest HiLux is around the size of a Sherman Tank. Toyota are not alone in this. The Ford Ranger, Isuzu D-Max, and VW Amarok have become bigger as manufacturers have increased rear-occupant leg room. For a builder, sparky or plumber looking to use their work vehicle for recreational purposes, this extra occupant space has been a game-changer.

As sales of dual-cab utes have risen, so too have marketer’s budgets. This is the final factor leading to greater popularity.  When was the last time you saw an ad for a small hatchback? Struggling to remember?  You’re not alone. The virtual circle of increased consumer salience, greater sales and higher production of dual-cab utes has manifested in more ads of these vehicles appearing. This has recently been turbo-charged with the Ranger knocking the HiLux off its perch by becoming ‘Australia’s #1 selling vehicle’.

In such an environment, it would be a courageous politician who sought to upset the status quo with legislation that made the country’s three top-selling vehicles more expensive. Yet, this is what has transpired as the federal government seeks to introduce legislation that brings our vehicle emissions into line with other OECD countries.  At our current standing, Australia is on the same footing as Russia as being one of only two major economies without a vehicle efficiency standard.

Unsurprisingly, the Federal Opposition has been quick to point out that any legislation aimed at reducing emissions in the motor industry is nothing more than a “ute tax” and that the Government is “Coming for your HiLux”. The Leader of the Opposition has ditched the hi-viz vest in favour of standing in well-branded, new-car showrooms highlighting the potential pitfalls of any legislation that seeks to reduce the current emission standards. ‘They’re coming for your HiLux’ is proxy for the Government seeking to reduce individual liberties and restrict one’s ability to go off-road on the weekend.

A clearly spooked Climate Change Minister, Christopher Bowen, has moved swiftly to water-down legislation to appease the ute-driving public along with the manufacturers of these popular SUVs. In short, the Ranger, HiLux, D-Max and other dual-cab SUVs will not have to comply with the proposed legislation as they will be re-classified as ‘light commercial vehicles’.

The political storm may have blown over, but the battlelines have been drawn as Australia charts a course towards reducing its vehicle emissions and embracing electric vehicles. For now, the fight over which parent gets the HiLux may have reached a delicate compromise, however, if the Albanese government wins a second term the notional parents may return to the lawyer’s office to duke it out over what happens to the HiLux.

Nick Foley is the director of brand agency at Intangify.