Why is the price of Toyota cars increasing so much in China?

Toyota's price increases are mainly Highlander, Alpha and Prado. There are two reasons for the price increase

First, the functionality of the booster car is indeed powerful and cannot be replaced in the same class

The functionality of the product is not good, don't talk about price increases, not many people will see you reduce the price. But this is secondary.

Second, the number of these cars is very low, and the supply and demand relationship has been in a state of hunger for a long time

For the Highlander, the lack of production capacity for the engine led to a reduction in the production of the car. It's not enough to just look at Highlander's monthly sales. Similarly, the Asian dragon is also mixed up, and the hybrid system** is insufficient, so the hybrid version of the car may have to wait 2-3 months.

Even if the dealers make a difference, the Asian Dragon Portfolio is actually still room for price increases. This is a strategic question for Toyota, even if the Chinese market is large, it is not planned randomly, and every step is very cautious. At the same time, Toyota's corporate culture has this cautious attitude.

Even if the Chinese market is large, it will not be rashly arranged. Toyota cars are selling well all over the world, while cars are also selling well in developed regions such as the United States, Southeast Asia, the Middle East, Japan, etc. China is important to Toyota, but that doesn't mean it can't be without you.

In contrast, many brands, such as General Motors and Volkswagen, have more than half of the world's sales in China, and China is a bit shaky, and the performance of the headquarters cannot be supported, and the pressure on the volume of various models in China is very high.

As for the ERFFA, the shortage of imported cars in the global quota has led to a serious imbalance between supply and demand. I had thought that the Wilbur Act would alleviate this, but I found out that the Wilbur Act was meant to share the original quota of Alpha. The combined quota of Alpha and Welfa is only 400 units per month, and the shortage is okay.

Similarly, Lexus sells much less than BBA. However, due to the reduction in imports**, supply and demand are much tighter than those of BBA. As a result, the East India Company and the West India Company raised **.

All in all, Toyota's often doesn't depend on how big the demand is, but how much it has. After the tight supply and demand, speculators entered the market, such as hoarding cars such as Erffa and Prado, which undoubtedly added fuel to the fire and further exacerbated the situation.

Because to be honest, Toyota cars are also very good now, so they will keep increasing the price.

In fact, it is mainly because the intermediate channel dealers collect too many taxes.

In fact, this phenomenon is also very normal, mainly related to the development of more comprehensive national conditions.

Because to be honest, Toyota has really improved a lot compared to before.

Because of the high tax, parallel imported cars are expensive to sell in China, and there are powerful domestic importers who monopolize the channel. Other car dealers don't have the strength to purchase, and they have monopolized the ** and formulated them themselves.

In 2020, Toyota ranked first in the world in terms of vehicle sales, reaching 9.52 million units. In 2020, Toyota's largest market was still North America, which contributed about 2.31 million units to its annual sales.

Toyota didn't think about the car company.

It is a Japanese multinational automotive manufacturer listed on the Tokyo Stock Exchange (TYO), the Nagoya Stock Exchange (NAG), the New York Stock Exchange (NYSE) and the London Stock Exchange (LSE). The headquarters are located in Toyota City, Aichi Prefecture, Japan and Bunkyo-ku, Tokyo. The founder was Kiichiro Toyoda (1894-1952), and the current president is Akio Toyoda.

On the 2020 Fortune Global 500 list, Toyota ranked 10th.

1. Strength is the premise of price increase

Toyota's price increase is so famous, mainly due to its Highlander, Alpha, Prado and luxury brand Lexus. These cars basically need to increase the price on the market, and even some models need to be bought in a hurry.

2. The marketing methods are really slippery

Secondly, Toyota's strategy is also very important, and I believe everyone understands the truth of supply and demand. To put it simply, it means that there are few products but many people want them, which will naturally cause a situation of price increases. The car is also a truth, the shipment is so much, and the majority of customer groups can not be satisfied is "scarce is expensive".

For example, the price increase of Alpha can reach two or three hundred thousand, among which, a very small amount of ** cannot be ignored. Due to limited production capacity, the amount of this car allocated to the Chinese market is very small, and it is said that its monthly quota in China is only about 400 units, and from the perspective of the law of market economy, the scale of supply and demand is seriously unbalanced.

After all, in the domestic high-end MPV market, no one can play better than Alpha, coupled with the strong respect for Alpha in Guangdong and Hong Kong, the image of "star nanny car" is deeply rooted in the hearts of the people, and the strong popularity makes Alpha almost impossible to find a product that can be equivalent to it in this market.

The first is people's consumption habits, thinking that Toyota cars have good performance, and the second is the correct marketing means of Toyota cars.

When the Toyota Highlander was first launched, the monthly production capacity was only 8,000 units, but tens of thousands of people came to the store every month to order cars. So what to do? The one with the highest price winsAnd for Highlander, the sales volume for a month at the original price is 8,000 units, the monthly sales volume is still 8,000 units for 5,000 units, and the monthly sales volume is still 8,000 units for a price increase of 10,000 units - what is the reason not to increase the price?

The above situation is typical".Scarcity is expensiveIn this case, most of the cases are that consumers are willing to increase the price of the car, and of course, there is another situation that is Toyota'sHunger marketingDeliberately create a situation of price increase, one to make dealers happy, and the other to let consumers imperceptibly accept a concept - "The car that can only be raised by the price increase must be a good car." ”

This second approach is a very successful marketing campaign from a business perspective, but from a consumer perspective, it is really a bit excessive. But it's clear that Toyota has not only been doing this, but is also preparing to do so for a long time to come.

In fact, everyone understands the truth, and there is no shortage of consumers who understand cars in China. Although Toyota's cars are indeed fuel-efficient and durable, compared with this expensive brand premium, the cost performance has dropped a lot. The main reason is that the domestic models are too weak, but in the past two years, the domestic brand has faintly shown signs of rising, and I hope to see the domestic brand achieve corner overtaking in my lifetime.

Everyone has formed an inherent consumption habit, everyone has defaulted to Toyota and even Japanese, as well as German cars are the most valuable. For the same price, if you buy a French car, you may only be able to sell it at 5% off in the second year, but if you buy a Prado, if you are lucky, you may be able to earn 30,000 yuan by selling it in the second year.

Therefore, it is really helpless to say that Toyota's price increase is really helpless. But personally, in fact, I have always believed that "price increase is a normal market behavior", of course, I mean the typical "scarce is expensive" and "the highest price gets". A slap does not make a sound, and consumers should not overly pursue the price increase car is the right way.

Because after all, Toyota is also more realistic, and consumers are more willing.

Because Toyota's cars are indeed very good, many people like them and are willing to pay for them.

The main reason is that people have good technology and high cost performance, so buy it.

I think so. It must be Toyota's relatively high cost performance.

I think it's probably because they feel that Toyota is better, so they do it.

This question varies from person to person, and some people just like it.

Toyota is a very cost-effective car, and no one wants to buy a car that is repaired every day.

Because of its reputation, it has a large sales market.

Toyota's price increases are mainly Highlander, Alpha, and Prado. There are two reasons why they can increase their price, one is that they are really functional and irreplaceable in the same class. The product is not good, let alone the price increase, and no one even wants to reduce the price.

But this is only secondary, more importantly, the amount of these cars is very small, and the supply and demand have been hungry for a long time.

Taking Highlander as an example, the lack of engine production capacity has led to the production of this car not going up. Pay attention to Highlander's monthly sales, many times it is not more than 10,000. Similarly, there is also the Asian Dragon Hybrid, and the hybrid system is insufficient, resulting in 2-3 months to buy a hybrid car.

If the dealer is ruthless, the Asian Dragon Hybrid actually has room for price increases.

This is Toyota's strategic problem, even if the Chinese market is large, it will not be rashly arranged, and every step is very cautious. On the one hand, it is due to Toyota's corporate culture, and on the other hand, Toyota has this cautious confidence. Toyota sells very evenly around the world, the United States, Southeast Asia, the Middle East, Japan, Hong Kong, Macao and Taiwan and other places are selling very well, although China is important to Toyota, but it is not impossible to do without you.

On the other hand, many brands such as GM and Volkswagen account for more than half of the world's sales in China.

As mentioned above, the domestic Toyota with a price increase, as for Alpha, it is the lack of global quotas for imported cars, resulting in a serious imbalance between supply and demand. I thought that Wilfa could alleviate the situation, but it turned out that Wilfa was sharing the original quota of Alpha. The combined quota of Alpha and Wilfa is only a pitiful 400 units per month, and the scarcity can be imagined.

Similarly, there is Lexus, which is far inferior to BBA in terms of sales, but due to less imports, the relationship between supply and demand is far tighter than that of BBA, so there is a phenomenon of ES and RX price increases.

In a nutshell, Toyota's car price increase is often not about how big the demand is, but how small the ** is. After the formation of tight supply and demand, there are also speculators entering the market, such as hoarding Alpha, Prado and other cars, which undoubtedly adds fuel to the fire and further aggravates the situation. I don't think Toyota is very well balanced in the world's major markets, Toyota's North American sales seem to account for only a quarter of the total sales, but it includes half of the total Lexus sales, and there are many American models to be launched in China and Australia (of course, with the integration of Toyota's product line, the difference between the American, Japanese and European versions of Toyota is shrinking), so in a way, North America is half of Toyota's country.

Toyota can pay less attention to sales in the Chinese market, but if there is a problem with North American sales, Toyota may not be able to hold on.

Because everyone still recognizes Toyota, and at the same time thinks that the configuration of this car is relatively high.

Because Toyota has always been popular in China, and Toyota has a good reputation. So the price increase in China is very strong.

Because in Toyota's sales link, the more common routine is hunger marketing, which can mobilize the appetite of Chinese and can achieve a situation where supply exceeds demand.

Author Li Chenchen (picture from the Internet).

So what is premium capability? It is well understood that it is the added value beyond the value of the product itself; In life, those high-end luxury luxury products, its premium ability is actually far higher than the value of the product itself. Speaking of which, many people may misunderstand that the more luxurious the brand, the stronger the premium ability of its products, in fact, there is no such data to prove this understanding in reality, and it also does not indicate that only luxury brands have the ability to premium.

Let's give you a simple example.

Let's take Toyota's Land Cruiser as an example, the Land Patrol 5700 is 1.1 million, such a ** has been a rival with Range Rover, and some time ago due to Range Rover's price cut, Land Patrol can be said to have no "comparable" in the same price and class, from the car brand point of view, the price is high, 1.1 million Toyota, the premium ability has exceeded your imagination. Aside from taxes and costs, in the parallel car market, the price of such a high price of a model of the same displacement may not be much, and the key is that the sales of Land Patrol are not bad. So does the land patrol belong to the ranks of luxury cars?

In fact, we can see from its consumer group that the consumer group of Land Patrol is the same level as Range Rover and S-class consumers.

In fact, don't underestimate the Toyota brand, its Land Patrol high-end and Alpha two models are difficult to meet opponents in the same class. As one of the few car brands that sells million-level products, its strength should not be underestimated. In the field of ** grid, Toyota's premium power is more powerful than the luxury car brands we generally know.