The fault meant it produced foul-smelling white smoke and was believed to negatively affect performance and efficiency, senior associate Hamish Davies said.
“The proceedings allege that this would likely reduce the value of the vehicles and the lawsuit is seeking compensation for affected owners.”
Owners could have incurred repair costs, excess GST and finance costs paid when purchasing their vehicle, inspection fees, service costs, and loss of income connected to owning a defective vehicle, he said.
The Australian Federal Court ruled in favour of 250,000 owners in a similar case in 2019, finding the value of the vehicles was reduced by 10 per cent.
“Even if your vehicle was repaired or sold on, you could still be entitled to compensation,” Davies said.
The class action was being funded by Court House Capital, an Australian-based litigation funder.
Toyota New Zealand has been approached for comment.
