[volkman10]

Toyota Innova Hycross ZX, ZX (O) bookings paused again.

Innova Hycross ZX, ZX (O) bookings halted for the second time
Other variants currently have a 14 month waiting period

Link:

[CEF_Beasts]

Originally Posted by volkman10

Toyota Innova Hycross ZX, ZX (O) bookings paused again.

The bookings had opened only for a month (ie. only for the month of April), which was already advertised by dealerships before bookings had reopened !

[Sanidhya mukund]

What exactly is preventing Toyota from making enough cars? A company that is known globally for its production process and efficiency is expected to do better than this. This car was launched almost 1.5 years ago, and even then, ZX bookings were closed almost immediately after launch. Does it really take that long to resolve supply issues?

Looks like Toyota is taking the market back to the NE118/ Uno days when bookings used to close on a given date.



Source: YouTube

[Aditya]

Toyota Innova Hycross ZX, ZX (O) bookings paused again Posts moved to a new thread.

[govindremesh]

Originally Posted by Sanidhya mukund

What exactly is preventing Toyota from making enough cars? A company that is known globally for its production process and efficiency is expected to do better than this. This car was launched almost 1.5 years ago, and even then, ZX bookings were closed almost immediately after launch. Does it really take that long to resolve supply issues?

Looks like Toyota is taking the market back to the NE118/ Uno days when bookings used to close on a given date.

Attachment 2608209

Source: YouTube

This might be related to Price elasticity of demand. Cars usually have an elastic demand, especially for top variants.

At the current numbers, it's possible that the profitability is at an all time high due to full utilisation of the available production capacity. Increasing supply decreases demand, which would require price corrections to maintain demand.

One way to reduce demand is to increase prices, which also (in this case) increases profitability. Reducing the available numbers also promotes the exclusivity factor for top trims, which further is an impetus for the manufacturer to increase prices.

Increasing production capacity would require them to compensate by increasing sales to a certain number of cars to offset the CapEx (Capital Expenditure) required to ramp up production, which might not make sense given the potential size of the market, especially considering that it's the most expensive variants in question.

[manofinfinity]

I am confused now, is it a parts supply problem or demand is more than production capacity?

Also, I am seeing Crysta sales above 2000 constantly so is Crysta production/assembly simultaneously affecting Hycross production before Hycross if I remember when Crysta was launched there was not much buzz about its waiting period and the waiting period never were as crazy as we are seeing with Hycross?

[84.monsoon]

Originally Posted by govindremesh

This might be related to Price elasticity of demand. Cars usually have an elastic demand, especially for top variants.

Don't quite agree that this is the right explanation. Price Elasticity of Demand would dictate that Toyota should rise the prices to an point where demand = supply - i.e., make the HyCross more expensive to the point that demand drops to the level that thye can supply with their existing capacity.

Toyota has been reasonable about price increases on the Hycross. The top end launched in January 2023 at 29 lakhs, and now it is nearly 31 lakhs - so an increase of about 6% after 17 months - this is lower than the rate of inflation in India! This is unlike their pricign strategy with the Fortuner, where they have increased prices atrociously. Their pricing strategy for Innova HyCross may dictate that it retains the "high value purchase" reputation that every generation of Innova has enjoyed- value, including a reasonable upfront purchase price, low maintenance costs and very high residual value.

[swarnava.ch]

I find this a very stupid move. Two weeks back, I had gone to the local Nandi Toyota showroom to book a ZX(O) Hycross to be delivered Next Year March. I wanted to pre book based on my lease timelines but the sales guy discouraged me saying dont worry sir, top model availability has improved now and I will get you a car in 2.5 months time. Now god only knows when Toyota will re open the bookings. I feel cheated.

[padmrajravi]

Originally Posted by 84.monsoon

Don't quite agree that this is the right explanation. Price Elasticity of Demand would dictate that Toyota should rise the prices to an point where demand = supply - i.e., make the HyCross more expensive to the point that demand drops to the level that thye can supply with their existing capacity.

It may be that the addiitonal captial expenditure that Toyota requires to increase production can not justify the additional sales that will come of it. They may need a new plant or significant additional infrastructure to cater to demand. The current demand may not be enough to recover those costs and make it profitable within their convention/standard of reasonable time.

[pseudo_coder]

Why don't people pickup Invicto, instead of waiting so long for Hycross?

[Cresterk]

Originally Posted by pseudo_coder

Why don't people pickup Invicto, instead of waiting so long for Hycross?

But then you have to tell people you paid 30-40L for a Maruti