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Though a late entrant, Toyota is planning to conquer the Indian car market. The Japanese auto major wants to dispel the notion that the first mover enjoys an edge over the rivals who arrive late into a market.
Toyota entered the Indian market through the joint venture route, the partner being the Bangalore based Kirloskar Electric Co.
To start with, TKM released its maiden offer— Qualis. Qualis is not a newly conceived, designed, and brought out vehicle.
Rather it is the new avatar of Kijang under which brand the vehicle was sold in markets like Indonesia. Qualis virtually had no competition. Rather, it was a mini-truck converted into a rugged all-purpose van.
More importantly, Toyota proved that even its old offering, but decked up for India, could offer better quality than its competitor. Sumo sold 25, vehicles during —, compared to a 3 per cent growth over the previous year, compared to 25, of Qualis. But during —, it was a different story.
Qualis had been clocking more than 40 per cent share of the market. The heady initial success has made TKM think of the future with robust confidence. ByTKM wants to make and sell one million vehicles per year and garner one-third share of the Indian market.
The firm is planning to introduce a wide range of vehicles—a sub-compact, a sedan, a luxury car and a new multi- utility vehicle to replace Qualis. A significant percentage of the vehicles will be exported. But Toyota is not as lucky in China.
Init sold just 1, 83, cars in China, the fastest growing auto market in the world. The first car manufactured by Toyota FAW, the Vios, failed to attract much of a market, as, despite its unremarkable design, it was three times as expensive as most cars sold in China. Late start was not the only problem.
There were other lapses too. Toyota assumed the Chinese market would be similar to the Japanese market. But Chinese market, in reality, resembled the American market. Sales personnel in Japan are paid salaries. They succeeded in building a loyal clientele for Toyota by providing first-class service to them.
Likewise, most Japanese auto dealers sell a single brand, thereby ensuring their loyalty to it. Japan is a relatively a well-knit country with an ethnically homogeneous population.
Accordingly, Toyota used nationwide advertising to market its products in its home country. But China is different. Sales people are paid commissions and most dealers sell multiple brands.
Obviously, loyalty plays little role in motivating either the sales staff or the dealers, who will ignore a slow selling product should a more profitable one turn up. Besides, China is a large, diverse country. A standardized ad campaign will not do.It's kind of like dating--that's the bad news.
There's a lot of effort involved, and sometimes, there's some humiliation. But when you're an entrepreneur competing for the affections of the world.
INTERNATIONAL BUSINESS - Why has the late corner’s strategy of Toyota failed in China, though it succeeded in India Why has Toyota failed to capture the Chinese market Why is . International Business. docx Why has the late corner’s strategy’ of Toyota failed in China, though it succeeded in India?
8) Why has Toyota failed to capture the Chinese market? Why is it trailing behind its rivals?
1). Read this essay on International Business - Why Has the Late Corner’s Strategy of Toyota Failed in China, Though It Succeeded in India Why Has Toyota Failed to Capture the Chinese Market Why Is It .
Why has the ‘late corner’s strategy’ of Toyota failed in China, though it succeeded in India? 2.
Why has Toyota failed to capture the Chinese market? Why is it trailing behind its rivals? Why has Toyota failed to capture the Chinese market?
Why is it trailing behind its rivals? barnweddingvt.com – Toyota failed to get a strong hold in the Chinese market due to poor understanding of the market.