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Originally Posted by GTO The Etios & Liva felt quite old & outdated even when they were brand-new. The Innova Crysta is pretty much running on the same platform as the 2005 model. |
It may sound mean or evil to say this, but I have always wanted the Innova brand to stop raking in the numbers it does, simply because the market should tell Toyota (and other makers) that hawking a now 15 year old platform with some cosmetic changes over time and a slightly more powerful plant is just being lazy and taking the market for granted. Sadly though it appears as if the domination of Innova in this MPV segment is like Maurti in the mass market segment and is unshakable.
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Originally Posted by Porschefire So, the market as of now - Toyota, Maruti Suzuki and Honda, after being pioneers of automotive tech in India, losing their plot completely by planning low cost business models for India. |
When were Toyota and Honda pioneers in the Indian market ever? They both have exactly 4 models total that have actually dominated their respective segments the City and Civic for Honda, Innova and Fortuner for Toyota.
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Originally Posted by ds.raikkonen I think Toyota is focusing and really putting efforts where it pays off best-Japan and the US. T |
Would disagree on this - these are the largest 2 markets yes, but it does not mean it is not putting in efforts in other markets which are far smaller than India.
Take Philippines (9th largest market for Toyota, Saudi Arabia 10th largest and compare their product portfolio in these countries with the anaemic one in India.
Now factor total market size, like Philippines has a total automobile market size of 4,50,000 units annually. India by comparision has a market size of 4 mn units JUST for passenger cars, combined the automobile sector has a size of 14 Mn units in total.
The problem with the likes of Honda and Toyota is that they lack any risk taking appetite which leads to them NOT focussing on India specific challenges and addressing them.
Now look at Kia or MG (round 2, as SAIC has been around for a while) and just see how they studied, targeted and took a market. And hey, it is not even 'low cost' cars or whatever Toyota is trying here, but cars with an average sticker price of Rs 15L+!
I think even Ford tried and still is, VW seems to with their $ 2bn (Iirc) funding plan are serious about the market, but these 2 Japanese giants just don't care enough and thus they are in the soup they are in. I would think Renault is also in the list of trying and it shows, they had good sales with Duster (though again they have not updated the same) and Triber is doing really well with Kwid / Climber doing decent numbers.
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Originally Posted by Kosfactor Spending overall has reduced, automobile industry has shrunk, luxury car sales has huge potential in India but economic conditions aren't that great at the moment. You have got to go the opposite direction now. |
This is the downturn in an economic cycle (and still not a recession mind you). Car cos (or indeed anyone with large capex and land banks needed to set up plants) don't think or plan on the basis of one cycle despite all the media hooplah around it.
Facts are as follows,
1) India has 50 motor vehicles (not even passenger cars) / 1000 people. China is for some perspective, at 230 / 1000. India was at 22 / 1000 just 4 years ago, so in other words the market is small but it has doubled in size in less than 4 years. Forget China, some other countries who have more than 50 / 1000 in our similar income bracket - Zambia, Nigeria, Mongolia, Bolivia...war torn Iraq has 2 times our vehicle ownership.
2) What follows from the above is that the market WILL grow in the long term. Even accounting for BS6, EV revolution, ride hailing etc etc...etc etc, the market HAS to grow.
3) Even with such abysmal vehicle ownership rates, India is now the 4th largest automobile market in the world. Even with the current anaemic growth rates, we are expected to be the 3rd largest in the world by 2022-23 (it was originally projected to be 2021)
For an automaker of the size of Toyota to throw in the towel and go the Maruti tincan (no offense meant to any Maruti owner or fan) is just stupidity.
Maybe not luxury but look at the volumes Kia has been selling of its Seltos model, and this is not an entry level tin on 4 wheels our mass market cars mostly are (from a safety and sheet metal perspective) but a 15-20L vehicle. Ditto MG and their Hector. Creta has already hit 10k bookings and that is another vehicle in this segment.
Even 5 years ago when Creta was launched, the market did not have the appetite to absorb 3 different models retailing in the 15-22l category selling upwards of 20K units / month combined. Picture 2025 when our per capita income is projected to be 30% higher or 2030 when we will hit a middle / middle income grouping (from the low middle income group we are in).
Car cos look at the long term and big picture, and given that India is arguably the one market to be in (outside of Africa, but Africa is too scattered as a market, but potential is still ripe there). On a slight aside, good to see Mahindra, Bajaj and TVS take the African auto market seriously as it is still driven by 2nd hand imports but is slowly changing as the continent itself starts to grow.