Toyota Innova - what is the formula to conquer Vietnamese customers?

The success of the first generation after more than 10 years can be a driving force, but also a pressure in the face of rapid changes in the car market.

Innova is a special case in the Vietnamese market when it is not the only product in the segment but is mentioned as a "one-man show". For example, its brother Vios, a B-class sedan also leads the segment, but cannot completely overshadow competitors such as Honda City, Kia Rio or Mazda2, Ford Fiesta.

Innova is different, the sales of the 5+2 MPV completely overwhelm its competitors Kia Carens, Rondo or Chevrolet Orlando. For Vietnamese people, when mentioning MPV for family, they mention Innova, the remaining names are just additions for those whose needs are different from the majority.

First generation Toyota Innova.>> Photos of Innova generations

Launched in 2004, the family MPV is a rare product that can last a generation for nearly 13 years. The popularity of customers in many markets shows no signs of decreasing, which is the reason why the Japanese giant makes the most of the old platform.

Innova is a product in the project to develop car models based on the improved multi-purpose vehicle platform IMV (Innovative International Multi-purpose Vehicle), along with the Fortuner, Hilux. Innova was first produced and introduced to the Indonesian market in 2004. Currently, Toyota assembles Innova in Indonesia, Taiwan, Vietnam, India, Malaysia and the Philippines. In each market, Innova has been successful in sales.

Launched in the Vietnamese market in January 2016, Innova brought a real breath of fresh air, completely different from what Toyota had done before. The car's name means innovation, short for "Innovation", and what the Japanese car company provided for Innova was also far more innovative than Zace, the model that Innova replaced.

The previous Zace was durable but nothing but durable. The Innova is different, with the durable brand power available, combined with unique equipment such as leather interior, wood paneling, dual-zone air conditioning, cup holders around the car, CD player with 6-speaker sound system. The price is 29,900 USD for the G version and 26,900 USD for the J version, equivalent to about 667 million and 600 million today. The price is considered moderate, suitable, even "pleasant" for the newness that the MPV brings.

From Zace to Innova was a new step. In 2005, before Innova was launched, Toyota sold 11,813 cars in the Vietnamese market, but in 2006, the Japanese car company set a target of selling 800 Innova cars per month, meaning Innova alone would be around 10,000 cars per year. Toyota did not set such a high target for no reason.

First of all, still theThe "very Toyota" advantage is2 liter VVT-i engine is durable, rarely breaks down, replacement costs, maintenance and repair are cheap, spare parts are available everywhere, spacious interior. For Vietnamese customers 10 years ago, that was more than enough. Equipment with driving assistance technology, safety, interior amenities were not practical needs, beyond desire.

In addition to the advantages of the brand and the newness of the interior, Innova also achieved high sales thanks to its diverse versions. The first generation 2006-2007, the car only had two versions G and J, both of which were equipped with manual transmission, in which the J version had many less equipment, so it was favored by taxi companies. There was a company in Ho Chi Minh City that had up to 3,500 cars out of a total of 5,000 cars in operation, which was Innova, accounting for 70%.

Design update 2012-2013.>> Photos of Innova generations

The advantage of customer preference makes Toyota's product strategists wisely "stick" higher equipment to the following generations. First in 2008, the car had an automatic V version, opening up another class of customers who are "lazy" to drive. The design also changed a bit in the grille and front bumper, but the overall lines remained unchanged.

The design style applied to Innova is a basic, neutral shape that can be easily accepted in many different markets, especially Asian customers, and at the same time has a lot of "land" if they want to make changes for the next generation. With this strategy, Toyota saves a lot of research costs when not having to create a unique look for each market, at the same time paving the way for the next versions.

Following that were upgrades in 2010, 2012-2013 and most recently 2014-2015. The change that made the car bounce the most was around 2012-2013 when the MPV model upgraded both the engine and appearance, adding dense versions including J, E, G, V and GSR, in which J and E were manual, G and V were automatic.

Innova is not all advantages. The car has inherent disadvantages such as thin shell, high speed of 100 km/h on the highway often floating, accompanied by a buzzing sound, giving a feeling of insecurity and the design has no highlights. But the most important point, which can become the weakness of any car company today, is safety equipment. Innova is currently sold in Vietnam equipped with only 2 airbags and ABS anti-lock brakes. These are the minimum technologies that a small car must have.

Despite these limitations, Innova still shows no signs of losing steam in the sales race, because its practical advantages are still accepted by a segment of customers, especially businesses, organizations and transportation businesses.

By the end of 2015, Innova sold about 87,000 cars, the best-selling car model in the Vietnamese market after 10 years of existence. Innova, as the leader in sales and localization rate, is Toyota's strategic anchor in the Vietnamese market, for both sales and production. Recently, information about the new generation of the MPV has appeared and is about to be launched to customers, causing the sales of the current generation to be affected, decreasing from over 1,000 cars to about 800 cars.

The demands of today’s new generation of customers may have unpredictable consequences for the fate of the new generation Innova. According to a long-time sales expert, if the new Innova wants to target young customers who have access to a lot of information about cars, it needs to be equipped with more safety and convenience technology, rather than simply innovate in design.

This person also commented that customers who are organizations, businesses or transportation companies may not care about safety and convenience technology but only look at fuel consumption and durability to decide to buy a car, but individual customers will be the opposite.

Toyota Innova is for sale in Vietnam.>> Photo of new generation Innova coming to Vietnam

"With Vietnam's roads gradually improving, with many highways, and safety being a top priority, the poor Innova as it is now is not a reasonable choice for individual customers," he emphasized.

In addition, another barrier that can "gnaw" at Innova's sales is the rise of small crossovers and pickups. The high-chassis car segment is the priority choice of individual customers, surpassing traditional sedans. With Innova's budget, consumers can choose Ford EcoSport, Hyundai i20Active or Creta with many technologies, modern designs, suitable for young people and still ensuring high and airy.

The new generation Innova when launched in Indonesia made a splash with its radical design, inspired by the new Fortuner and Hilux. But the more interesting point is inside and below. Interioris a big step forward when the Japanese automaker wants the MPV to feel more premium by using faux wood materials, an infotainment system displayed via a 7-inch or 8-inch touch screen.

The gasoline engine is a 2-liter 4-cylinder 1TR-FE, the same code as the engine currently used for Innova. However, the Dual VVT-i variable valve control technology is a new, improved feature compared to the single VVT-i type currently used. The engine is also improved to achieve stronger performance, in addition to upgrades to the steering, suspension, and chassis.

From the new generation, the localization rate of Innova in Indonesia increased from 80% to 85% with about 123 suppliers. But that is the story in the archipelago country. In Vietnam, Innova sells nearly 1,000 units per month, equivalent to 1/5 of the Indonesian market. The localization rate of Innova is nearly 40%, this is also the car model with the highest localization rate of Toyota in Vietnam, with a system of 18 component suppliers.

When appearing in Vietnam, what Innova will be equipped with, we need to wait for the answer when Toyota introduces the new generation MPV in the near future. Innova is still the trump card of the company, but in the new deck, will this "trump card" be in harmony or eliminated?

According to VNE