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Old 5th March 2023, 11:48   #1
pqr
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Toyota Innova enters the "Million Club" | 10-lakh sales up in India

Toyota Innova enters the "Million Club"

Toyota Innova enters the "Million Club" | 10-lakh sales up in India-1.png

Launched in 2005 and spanning over three generations, the Toyota Innova crossed the one million wholesale mark in February 2023.

Toyota Innova enters the "Million Club" | 10-lakh sales up in India-2.png

With this new sales milestone, Innova has joined the "million" sales club in India, thus expanding its member group to 13 products. The most amazing thing is that all other products are under 4 metres in length (except the Maruti Dzire from 2008–2012), and the Innova is longer than 4.5 metres, has a much bigger engine, and is the most expensive in this prestigious club.

Toyota Innova enters the "Million Club" | 10-lakh sales up in India-3.png

Innova started its journey with the tagline "All you desire," and it stayed true to itself. As an MUV, it was very spacious, with easy ingress and egress, having a usable third row seat for adults, upmarket interiors akin to sibling Corolla, optional captain seats in the second row, a large glasshouse, great AC for Indian driving conditions, stable highway manners, a great ride over broken surfaces thus reducing travel fatigue, a decent level of equipment in line with industry trend, and a decent drivetrain offering. Innova also broke the traditional Indian boxy MUV design theme by incorporating a kinematic design theme into the overall design language and having the sloping bonnet line, swept back headlamp, highly raked A-pillar, triangular tail lamps, and curvaceous rear drop line.

All these attributes made it an all-rounder premium car over and above the conventional MPV image. On top of all that, there were the hallmark bulletproof reliability and low maintenance costs of Toyota, which made it a very compelling proposition. Innova can put lakhs and lakhs of kilometres on the odometer and still stay young forever. As a result, its resale value never drops dramatically over time. This made Toyota increase Innova’s prices ever while still being able to sell more cars until 2018, thus defying the price elasticity of demand curve in the Indian passenger vehicle market. In a way, Innova redefined what premium means in the mass market category.

30% of sales in the first generation came from fleet operators, and the rest were in the personal segment. Since the second generation Innova became more expensive, the fleet segment mix got reduced to 5%. Innova has always maintained a premium taxi image for itself, and mere one, two, or three occupants in a taxi Innova are also a common sight. What it means is that customers book an Innova as a taxi for a comfortable ride and premium feel over the utilitarian aspect of a conventional MUV.

Toyota Innova enters the "Million Club" | 10-lakh sales up in India-4.png

Innova, from the beginning, had a ladder-frame chassis and a RWD architecture, which Toyota called the IMV platform (Innovative Multipurpose Vehicle), which was shared with other products like the Fortuner and the Hilux. Innova came with a petrol and diesel drivetrain option. Demand for petrol-powered drivetrains has always been low due to their relatively low fuel efficiency. Toyota has also introduced a CNG kit in 2009 from Minda Auto Gas.

In 2010, Toyota upgraded the Innova to meet BS4 emission norms with the addition of an intercooler and an altered catalytic converter.

With the second generation of Innova (with the Crysta suffix), Toyota became way too generous with its drivetrain offering and introduced two different and more powerful diesel engines, as well as an automatic transmission option for both petrol and diesel. The price increase was also substantial.

With the start of the BS6 emission phase in April 2020, Toyota consolidated its offering and discontinued the powerful diesel option for the Innova.

With the third generation, Toyota is taking a big leap of faith by introducing the monocoque-chassis Innova with FWD architecture, and that too without a diesel engine. To address the need for higher fuel efficiency, Toyota has introduced a strong hybrid drivetrain, and this generation got the new Hycross suffix. Since petrol Innova till date has contributed only 1.6% of sales, the risk seems somewhat calculated, as Toyota for the first time in India has shown willingness to continue with older generation diesel Innova (Crysta), together with the new generation (Hycross), for a smoother transition rather than an abrupt and rude sales shock.

Toyota Innova enters the "Million Club" | 10-lakh sales up in India-5.png

In its first generation, the highest sales were achieved in 2012 at 75,911 units. Lifetime's highest sales of 78,130 units were achieved later in 2018, when the Indian passenger vehicle market also touched its last peak. Since then, sales of Innova have dropped in line with the overall market and later due to a supply chain shortage in 2022, which limited sales just before the generational transition.

Toyota Innova enters the "Million Club" | 10-lakh sales up in India-6.png

Despite being an expensive car, Innova broke into the top #10 ranking three times in its lifetime and maintained a very decent ranking till 2018.

Toyota product portfolio

Toyota Innova enters the "Million Club" | 10-lakh sales up in India-7.png

Till date, Innova has contributed 46% of Toyota’s sales in India and remains an anchor product for the brand.

Competition

Toyota Innova enters the "Million Club" | 10-lakh sales up in India-8.png

Over the years, Innova has maintained a healthy market share in the MUV segment, which is largely made up of lower-priced offerings. Since 2018, other products have expanded the segment. In recent time, Kia is the only player that has had success, with Carens positioned just below Innova.

Toyota Innova enters the "Million Club" | 10-lakh sales up in India-9.png

The monthly average sales rate is still very impressive, as Innova is a premium offering in the Indian market. Others also tried but could not challenge Innova on its turf.

White space in the MUV segment

Toyota Innova enters the "Million Club" | 10-lakh sales up in India-10.png

The above infographic from 2022 shows that there is white space available in the Indian MUV segment for growth. It also clearly depicts that only a handful of manufacturers were cleverly able to capitalise on potential in the MUV segment. And Toyota is one of them, with Innova being the brand's breadwinner in India, along with the Fortuner in the SUV segment.

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On a side note, I was expecting Toyota to have started this milestone celebration from the production line itself with something similar to below.

Toyota Innova enters the "Million Club" | 10-lakh sales up in India-11.png

However, it seems their current marketing and PR team is not competent enough to pull off an incredible marketing campaign like they did with Aamir Khan way back when Innova was launched. In fact, the launches of the Hyryder and Innova Hycross were all over the place, whereas Maruti had a well-planned and executed launch for the Grand Vitara at the same time.

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Having said all that, I am a big fan of the Toyota Innova. While travelling outstation, either on a business trip or a leisure trip within India, the most important thing I look for is the availability of an Innova as a taxi, as it makes the journey very comfortable. As Innova has made me believe since 2005, "when the going (roads) gets tough, the tough (Innova) get going". I am also sure that many of you must also be having your cherished moments with Innova, either as owners or as travellers like me.
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Old 5th March 2023, 14:20   #2
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re: Toyota Innova enters the "Million Club" | 10-lakh sales up in India

I am a big fan of your detailed graphical analysis threads @pqr, always a delight to read them

Coming to the car that got me my T-BHP membership: The mighty Innova.

This post pulls on my heartstrings, because as a 4-year-old kid the car that really got me into cars was the 2005 Innova we had at home!

I still remember as a kid my dad had got home some confidential documents related to the Innova (Innova = Innovation), before the car was launched in 2005, pertaining to the development of the car on the IMV platform. My dad was somehow related to the Innova project in India, and our car was built on the production-line in front of his eyes, till date I have never asked him in what way was he involved in the project, looks like it's a good time to ask him!

We had a Ford Ikon 1.6L before the Toyota Innova and when my dad had booked the Innova, a gentleman who worked in GM, had questioned my dad about why are you putting money into a unknown product from Toyota, the Japanese Giant, well the rest is history as we see today.

Our Innova was pushing out 136hp and 181Nm from its 2.0L petrol motor, which was a lot compared to competitors like the Sumo, Scorpio or Tavera
back in the day. 12.36 seconds 0-100 kmph was unheard for from such a large MPV back in the day! This petrol engine was quite rare, considering the 102hp 2.5L Diesel made up majority of the sales, and I still remember closer to 2014 fuel pump attendants would scurry to see a Petrol-Powered Innova at their bunk!

One thing that made the Innova really what it is today, apart from the Qualis, was and is the brilliant build-quality, Toyota India's after-sales network, excellent service experience and top-notch reliability. We sold our car very early, in 8 years and 92000kms itself to be precise, which is nothing for a car like the Innova, not because it was giving us problems but because we had gotten bored of the car and upgraded to the Fortuner in 2014, which was not the best decision if we look back, TBH! It takes hard-work, excellent after-sales and reliability for a product to become a household brand and eventually become a brand-name in itself, something which cannot be said about a lot of the current products from various manufacturers on offer today!

The Innova's price started increasing exponentially late in its lifecycle, yet people would flock to get hold of one!

The other day my dad called me and told me our Fortuner-replacement is decided, I knew the car even before he told me! Having completed 9 years with the Fortuner in Feb 2023, we're actively on the lookout for a replacement. The car that my dad saw parked on the road and took an immediate liking to its SUV-like styling was nothing other than the new Innova (HyCross)! He is a massive fan of the Hybrid-tech ever since he drove the Camry Hybrid a few years back.

Having travelled in cabs across the country, never did I ever meet an unhappy Innova driver. Cabbies just endlessly praise the car, clocking several lakhs of kilometers without breaking a sweat, be it the OG Innova or the Crysta! The Crysta's return in manual guise has made the cabbies the happiest lot!

There is a saying: Once you become a Toyota owner you just cannot look at any other brand as a replacement for a Toyota! This is true for the cars we have at home, the constant that will always stay at home is a Toyota! TBH, the credit for owning a BMW (our first premium car) today goes to nothing but the Toyota sitting beside it at home, for whenever the BMW throws a tantrum (fingers-crossed it never does throw one), the Toyota will come to the rescue!! And coming to the service experience of a premium brand like BMW and a mass-market brand like Toyota, the premium brands have miles to go before they can even dare to reach Toyota's after-sales levels!!

And lastly, want to know how Toyota celebrated the 1 Million Milestone for the Innova?
By raising the prices of the Innova HyCross by 75k within 2 months of launch , w/o any price protection for people who had pre-booked their cars unlike Mahindra which gives price protection!

The Innova Evolution

Toyota Innova enters the "Million Club" | 10-lakh sales up in India-innovas.png
Source: https://www.team-bhp.com/forum/test-...-facelift.html (Review: 2013 Toyota Innova Facelift)

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There are two things that I am unhappy about though:

1. The plastic quality in the HyCross has taken a mighty dip compared to even 2005 Innova standards, scratchy plastics galore in the cabin! No true-blue Toyota ever had such scratchy plastics to be honest, well the best-of-best manufacturers learn some cost-saving tricks from the market leader!

2. The Price hikes Toyota India does as a mass-market brand is truly obnoxious! The Fortuner pricing for us has simply gone out of budget, my heart stills wants a Fortuner but somewhere there has to be a limit as well...
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Old 6th March 2023, 10:40   #3
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re: Toyota Innova enters the "Million Club" | 10-lakh sales up in India

The king indeed . So many tried to compete with the Innova (Xylo, Aria, Marazzo...), but no one succeeded. The Kia Carens is the only MPV that garnered good volumes, albeit at a lower price / size band.

Brand "Innova" is perhaps as powerful in India as brand "Toyota" itself. That kind of power is enjoyed by very few products (internationally, "iPhone" and "Apple" would be a great example).

Never met an unhappy or regretful Innova owner. No matter whether they bought the car at 6.8 lakhs or more recently, 30 lakhs. That's saying a lot.
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Old 6th March 2023, 22:35   #4
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Re: Toyota Innova enters the "Million Club" | 10-lakh sales up in India

I had a very, very happy ownership experience with the Innova- 2006 model. Bought preowned, used for more than 1 lakh Km and sold it for new Ecosport since my wife (the other driver) found the steering too stiff.

I hope I can own the new Innova over the next couple of years.
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Old 7th March 2023, 11:08   #5
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Re: Toyota Innova enters the "Million Club" | 10-lakh sales up in India

Quote:
Originally Posted by CEF_Beasts View Post
There is a saying: Once you become a Toyota owner you just cannot look at any other brand as a replacement for a Toyota!

The Fortuner pricing for us has simply gone out of budget, my heart stills want a Fortuner but somewhere there has to be a limit as well...
The saying stands true to it. I was a 1st gen Hyundai Verna owner and post 3 yrs. moved to 2005 pre-owned diesel Innova V. Sold the 2005 model and then later moved to 2012 V model. Family doesn't want anything else other than Innova as they love the captain seat comfort and the space. I don't want to change to any other brand as I get the best and economical service, time and again.

I was also trying to move to Fortuner AT, but even pre-owned 2nd gen onwards demands a premium and hence have stopped looking out and continue to use Innova.
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Old 26th March 2023, 23:02   #6
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Re: Toyota Innova enters the "Million Club" | 10-lakh sales up in India

What is unique about the Innova since it's introduction is, it has been able to satisify both the Personal user as well as commercial user market consistently, and still be able to retain it's image without clashing with each other. The Innova is respected both as a comfortable taxi and also the choice for politicians and government vehicles, as well as an identity for every large family or one with multiple cars. No other car has been able to do this and we have repeatedly seen competitors lose their sales from consumer market when the car gets popularized by the fleet market.

No other brand has been able to achieve such a repute even with restrictive practices. Once upon a time, cars like Tata Indica, Sumo were the choice of personal buyers which then attracted the fleet market. Once these cars were in their hands due to the bad reliability it became a disaster for sales. Similarly Mahindra Verito completely became a taxi favorite. After this, no matter what they do it's difficult to get the balance back. When the Tata Zest and Bolt were launched, yellow board registrations were not allowed even though cabbies wanted to try them, but later when the Etios had dominated the market, even though they allowed commercial registrations, it did not do much benefit.

Even Maruti did a bit of restriction to keep the Taxi image at bay by offering the older model of Dzire as a taxi variant when there was a newer variant running.

But speak of Toyota, even today they still are willing to sell the top end Z Crysta alongside the lower variants and the newer Hycross. Not sure how long it would fare but there is still a good demand for both cars. All this shows the type of an all rounder image that the car has built. Its also a collaborative image built between the consumer market and commercial market with no definitive clue on where the reputation initially started.
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