Why do Toyota regret in China and India?

The world’s largest auto show in China, this year’s Shanghai auto show is unprecedented. After China’s car sales fell last year, it is still in a downturn this year. However, Japanese cars have risen against the market, and each has sold well. At the auto show, people are increasingly looking at Japanese brands of cars.

Compare the auto show in other countries, and then look at the car sales in various countries. I always think that Toyota has not performed well in China, and not only in China, but also in India, it is not comparable to Suzuki. From the sales results, it is a pity that Toyota can’t get sales success in a populous country like China and India.

According to the sales figures of passenger cars released by the China Association of Automobile Manufacturers in 2018, Volkswagen sold 4.1 million vehicles in China. From the figures released by Japan, Toyota sold 1.51 million units in China, equivalent to 36.8% of the public. Toyota and Volkswagen compete in the world. In 2018, Volkswagen Group sold 10.83 million vehicles, and Renault-Nissan Group also had 10.75 million units. Toyota sales including Daihatsu and Hino were 10.59 million units. Toyota is no worse than other companies.

Why can’t Toyota keep pace with the public in China? There are already many people who have analyzed this problem. For example, I think that investing in China is much later than the public. I think these are commonplace. The most confident companies in the world will definitely start investing and building factories when the market is most mature. It is impossible to act rashly when the market has only a bright future. When the market is maturing, brands and technology companies will officially enter the market, and they can quickly occupy the entire market with overwhelming competition.

This reason has caused Toyota to follow in China and India. Although Toyota’s sales in China increased by 13.7% in 2018, the total volume is still not expected to be popular. The main reason is probably that Toyota’s quality standards are extremely demanding, which makes Toyota’s cost and price high. Moreover, in contact with people in Toyota’s public relations and sales departments, people will feel extremely strong in the automotive industry. They believe that the direction of Toyota must be the final return of the car development, Toyota’s personality should be the most basic characteristics of the car.

However, the Chinese and Indian markets do not necessarily need Toyota’s effective leadership style around the world, nor the attitude or personality of Toyota. We have seen in China that Toyota’s Corolla is selling very well all over the world, but in the Chinese market, it wants to expand its share, and there are many difficulties. In India, Toyota’s Etios is worth more than RMB 70,000, but it still cannot compete with Suzuki.

Fortunately, Toyota has changed. On April 3, Toyota announced that its hybrid vehicle patents will be opened to the public during the year, mainly for China. We know that the Prius hybrid technology and the Prius are not popular in China. One big reason is that the hybrid technology has almost no factory in China. To do this, you must pay royalties to Toyota. Without the technology that enterprises can afford, they have lost the foundation of popularization in China.

On April 22, Toyota Motor announced that it will supply fuel cell parts to commercial vehicle companies under the Beijing Automotive Group. This is the first time Toyota has cooperated with Chinese companies on fuel cells.

With the cooperation between China and hybrid power and fuel cells, I wonder if Toyota will have a guarantee of double-digit growth in China in the future. Now Toyota has finally put down its shelves and made a market in China.