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Old 28th September 2006, 11:04   #16
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The main problem of many of these 'foreign' car makers like Skoda/Toyota etc is not their willingness to price competitively or produce likeable models. It is just that they are restricted by the number of plants they have in the country. Most of them have just 1 plant and they soon realize that it is something grossly inadequate for meeting the aspiration-level of the Indian consumer.

On the same token, their Indian operations are also not yet profitable enough for them to invest in a new plant or go in for expansion themselves....i.e. they still need the support of their parent organizations and most of them are finding the financial screws being tightened on them, 'decreasing profitability' etc. Thus their Indian operations find themselves quickly out-of-breath and 'out-of-range'.

Most of the 'Indian operations' of these manufacturers are busy making their basic 'bread-and-butter' model in their existing facilities and do not find much room for diversifying their model-range without expanding their facilities in the country.

So as a result of that we see the Toyota Camry coming in as a CBU and priced at atrocious levels because Toyota's plant has already exhausted its capacity making the Innova and Corolla models.
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Old 28th September 2006, 11:05   #17
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At the end, Toyota seems to be behaving very complacent. They have products like Vios and Echo (Yaris) in B & C. Not sure what stops them to bring them here. Vios is a 1.5l directly pitted against NHC and Yaris is a hatchback but with less cc priced more than Vios. Vios in SE markets costs around 5 lakhs for an auto/abs/airbag/cd model. less than 4l for a manual low spec model. This should be the model India is waiting for, if the manual ver is priced around 5-6l with all the taxes/levies included.

What happened to the plan of bringing the Daihatsu Sirion, the good looking hb with toyota's badge?
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Old 28th September 2006, 11:11   #18
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I guess they are happy with selling innovas, few corollas, very few camry's and they are probably targetting people who go in for 8+ Lakh. They just want to have their presence. Such laid back attitude won't help toyota in the long run. Maruti/Hyundai/Honda/Ford will eventually take up their share.
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Old 28th September 2006, 11:54   #19
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It is probably their tactic to let competition get 'complacent' !
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Old 28th September 2006, 11:55   #20
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Guys, Do NOT believe what you read in press releases. Toyota is very serious about India, and I can assure you that you will see a Toyota small car sooner rather than later.

They are here for the volumes. A hatch and mid-level sedan is a sure shot from Toyota.
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Old 28th September 2006, 12:12   #21
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yes, toyota's strategy is different from suzuki because of the market changes between 1984 & 2004. they will surely try to give maruti & hyundai a run for their money. toyota is known for building long lasting cars at lower costs. i dont think there is any reason why it should be any different when it comes to india.
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Old 28th September 2006, 12:45   #22
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Quote:
Originally Posted by esteem_lover
toyota is known for building long lasting cars at lower costs.
I don't agree with the second part, atleast in India, Toyota cars are highly overpriced, for example: Corolla.
In Gulf, Corrola is sold for 5 lacs approx, but India it is sold double the price (10 lacs approx) The same case with Camry. Are they trying to fool Indians by selling their sedan cars in the premium segement at double the price?
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Old 28th September 2006, 13:13   #23
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Quote:
Originally Posted by GTO
Guys, Do NOT believe what you read in press releases. Toyota is very serious about India, and I can assure you that you will see a Toyota small car sooner rather than later.

They are here for the volumes. A hatch and mid-level sedan is a sure shot from Toyota.
True, but there is a perception that they are not directing any efforts towards this, or they are taking too long to get new models in the indian market.

They spent a lot of time in getting the Innova out, and that was time well-spent. But why did they choose to bring out a new version of Camry. The Corolla is getting longer in the tooth and innumerable amount of facelifts that it has received in the past few years make Toyota look like another MUL.

And why still no news on the mid-size sedan front. The more they delay, the more tough it will be to beat Verna and NHC combine.

Perhaps its just bad PR on their part, frustrating eager customers like us.

Last edited by goldie_malhotra : 28th September 2006 at 13:14.
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Old 28th September 2006, 13:17   #24
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Toyota's strategy in India till now has been weird. Apart from the Qualis they really haven't had a smash-hit product, the Corolla after the initial euphoria has practically stopped selling (esp. Post-Civic) and the Camry's gonna go the same away after the intial hype dies down. The Fortuner has remained a rumour for years now & so has their small car. There was some news earlier that they might bring in Diahatsu with a small car but theat hasn't materialised yet.

Being the 2nd largest Manufacturer in the world their strategy & understanding of the market has been surprising. But I won't put them down just yet, remember they have HUGE pockets & even if they have some losses they will ride them out. Their guaranteed success depends on a good small car & also a decently priced SUV right now. The discounts on the Corolla & the Innova is also not doing any favours for their image in the market.
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Old 28th September 2006, 13:25   #25
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I'm sure they have a strategy but what that is, is beyond the common man (as in me!).......the Fortuner in particular is another outstanding example of convoluted logic! They could have made a killing on volumes but its going further back....and back...and back and I think its going to be 2008 that I last heard. All this for a vehicle that was originally expected around March last year

Last edited by suman : 28th September 2006 at 13:26.
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Old 28th September 2006, 14:32   #26
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Default 10% share with Corolla

Quote:
Originally Posted by amit
They keep saying that they want to increase market share to 10% by 2010 but how do they think they will do it? They don't have any car in the fastest growing segments in the country- B and C segment. No small car at the moment and for the next few years at least and no C segment sedan to take on NHC, Verna, Fiesta etc. I know they have the Innova but Indians prefer a sedan to a MUV. Their D segment offering, Camry, is horribly overpriced too. So that leaves the Corolla with the responsiblity to keep the Toyota flag flying high. And even that car's sales are slipping!
Probably they believe the BRICs story more than we ourselves do, and expect the economic growth of our country to be so explosive that corolla becomes the common-man's car in the next 4-years.
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Old 28th September 2006, 15:07   #27
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This could be a ploy on the part of Toyota to mislead the competitors. Toyota knows very well that to succeed in Indian market, it needs mid size sedan and hatchback at a competitive price. I am sure it is working seriously on these products.
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Old 28th September 2006, 15:36   #28
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Default Discounts on various models-Irritating or Good ?

Quote:
>>The discounts on the Corolla & the Innova is also not doing any favours for their image in the market
.

That the manufacturers give discount on various models after they have sold initial numbers to customers at a higher price seems to rankle a lot of people. Actually it is due to the way in which these cars are 'developed' in the country.

Initially when a new car is launched, the import cost is higher since it is usually imported in SKD from Thailand/Korea/Germany/Japan/Czech Republic. After sales build up and numbers start increasing these very same models are imported in CKD and more parts are also indigenised, (local auto ancillary manufacturers are tied up for making various components) which causes the Cost of Production to the manufacturer to come down and they 'faithfully' pass down the lower costs to the consumer.

Now it seems certain people do not like it. So my question is .... should the companies changing over to CKD still fleece the customers and not pass down the benefits of cost reduction just because they sold a few initially at a higher price ?????
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Old 29th September 2006, 00:08   #29
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Guess each one us need to have a look at this video once again:





Message:
Toyota knows what it is doing.
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Old 30th September 2006, 11:51   #30
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Quote:
Originally Posted by rahul_intlad
Guess each one us need to have a look at this video once again:
Message:
Toyota knows what it is doing.
Man, what a cheesy video. I do think Toyota folks probably know what they're doing. They're not bringing the Fortuner probably because they can't price it anywhere below Rs.18L. The Corolla is a good car, but it is never going to sell at the volumes Toyota is used to in other markets. Yaris has a center instrument cluster that may turn of many people. The hatch does look good, but it might cost in excess of Rs.7L. But, if they can price a car at Rs.4-5L with airbags and ABS etc. it might fly off the dealer lots, I would think.

I was also surprised to see that the total volume of Honda sales per month is pretty small as well.
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