Each year new models are introduced and many car manufacturers would step forward to display the new technologies and innovations they have developed. This is usually the case for German car makers such as BMW, Audi, Mercedes, VW and Porsche. The Koreans have also started to follow in this route and with good success. However this is not always the case for Japanese car makers. Companies such as Toyota has always been conservative with their approach to this and is often late to introduce massive changes to their popular models such as the Toyota Camry.
Toyota has also adopted the "if it is not broken, don't fix it" motto and kept their introduction of new technologies a step behind and watched while the others rush to show off their new technologies. Adopting this approach is good and bad. Good in the sense that you can see the errors made by the competitors and bad is that the competitors would be seen as technological innovators.
This can have a positive and negative effect to the sales of their cars. Positive in the sense that customers who are conservative and want a reliable car with good residual value will buy a the car. Negative in the sense that it will not deter younger buyers or buyers who are keen to have the latest technology in their car.
the launch of the latest Toyota Camry is a good example of how Toyota did not introducing anything new with this model. The 2.0 litre model still comes with a 4 speed automatic in comparison to Hyundai which is offering a 6 speed automatic transmission with their Sonata 2.0. The engine power also has not increase from 148ps while a similar Honda Accord 2.0 offers 155ps and a Hyundai Sonata 2.0 offer 163hp. Toyota's logic to this is that majority of the buyers are corporate customers and they are looking for reliability and comfort rather than technological advancement. However, this attitude will eventually see sales be eroded as the benchmark shifts forward and the comparable Toyota model will look like serious laggard. Customers perceptions and wants will change over time and reacting only when you notice changes in customer wants will be too late.
The key technology that Toyota has pioneered in the last decade has to be the Prius Hybrid. Having taken the lead in introducing this technology, Toyota was able to take a big bite out of the market and is currently the market leader for hybrid car sales. Saying this, Toyota currently does not offer the most advanced hybrid system in the world. Companies such as BMW, Mercedes Benz, Nissan and Hyundai have all caught up and some have been seen to have over taken Toyota in terms of outright technological advancement in this field.
Toyota will not lose sleep over the other competitors catching them as their market position and brand position is solid.
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