The ad quickly gained traction across Twitter and Facebook, with many users venting their outrage.
"@Toyota_Aus are you serious with your recent ads in Thredbo...women aren't as capable as men? it's 2016 not 1916," wrote one.
"I am insulted and shocked at this type of advertising, that suggests that women are only capable of doing the intermediate run, while men can do the harder ones. Toyota Australia, so do you mean now you are creating cars for women that are easier to drive than for men?," wrote another.
While another added: "This ad to me is just an example of a really dumb and lazy advertising strategy, on top of it being offensive. Embarrassing for Toyota, really."
A spokeswoman from Toyota said the company did not intend to cause offence with its Kluger campaign.
“We simply wanted to highlight that Thredbo, much like the Kluger, has something for everyone,” she told News Corp.
"The banners in question are from a previous campaign and have since been removed to make way for a new campaign," she said.
"We have printed the new marketing material and expect that they will be displayed at Thredbo within the next two weeks subject to weather conditions."
Just in case there was any confusion, here are some photos of Lydia and Torah in action - no blue runs in sight…