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Toyota set to take on competition in UV - Views on News from Equitymaster
 
 
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  • Sep 7, 1999

    Toyota set to take on competition in UV

    According to news reports, Toyota plans to launch five versions of its globally popular 'Kijang' model by the second week of January.

    According to sources, the company plans to take on competition in the multi-utility vehicle (MUV) segment, with aggressively priced models. The company is likely to price its models at approximately Rs 450,000 to take on Armada, Safari and Sumo .

    As in FY99, the UV segment has performed dismally in 1QFY2000. July sales declined by 8%, over the corresponding period last year. Over the period April-July 1999, UV sales were down 1%, compared to April-July 1998.

    It would be interesting to see how Toyota plans to grab market share from established players like M&M and TELCO. While it plans to initiate the battle on the price front, it cannot underestimate the importance of after sales service and the marketing and distribution network. Both TELCO and M&M already have an extensive distribution network in place, and Toyota will have to spruce up its distribution network considerably.

    However, one area where Toyota will have a definite edge over its competitors is in technology. Its Kijang models are established global brands. With continuous technological inputs from its parent, the company could become a force to reckon with in the future.

     

     

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