Toyota was once the king in Thailand when it came to being the most popular car brand. The title was held for a very long time until recently when Honda overtook Toyota for top sales figures. It is very surprising since Toyota has many large factories to assemble Hilux, Vios, Fortuner and Altis models. Toyota dominated Thailand's automotive industry for decades and Honda was nowhere close to challenging Toyota for sales.
Toyota really needs to rethink its strategy for South East Asia. Honda overtook Toyota in Malaysia and now Thailand. The shift will definitely start to worry Toyota's top management since their sales figures are declining. Toyota's customers seem to prefer Honda and this shift could be down to demographics of the buyers. Toyota's buyer traditionally are from the older generation and as the buyers ages their frequency in changing cars will decline. The younger generation do not look so much at the brand and prefer trendy new designs. Toyota has been labelled as old and boring while Honda has the image of the young and sporty.
Apart from the ageing models, Toyota cannot keep relying on their brand image to sell cars. They need to move with the times and improve their designs. Honda's direction is clever and they targeted the younger buyers to great effect. Even the engines and transmission have to improve to keep up with the market trends. Toyota has always been a laggard when it comes to introducing new functions and new features into their cars. This overly conservative mindset has cost them dearly.
A good example is Mercedes Benz which once was labelled as an old man's brand however, in the last 5 years the image of Mercedes Benz has changed tremendously. The new designs are aimed at the younger buy and the trendy look of the car made a massive difference. The change in direction saw Mercedes steal many younger customers from BMW and Audi. The marketing and promotions are also aimed at the younger buyers. All this effort paid off for Mercedes and it hit record sales 2 years in a row.
Toyota can do something similar to Mercedes but the question will again fall back to its ultra conservative management. If Toyota wants to remain relevant to the younger generation it has to reinvent itself and move with the times. Merely putting a car together with an out of date engine and old gearbox will no longer cut it. Competition is much stiffer now and relying on brand alone is not going to help.
Wednesday 19 July 2017
Tuesday 11 July 2017
Poor sales of Toyota in Malaysia
Once upon a time Toyota was one of the top selling brand of cars in Malaysia. This ended last year when Honda beat it to the top selling foreign brand in Malaysia. Honda didn't just beat Toyota, it made Toyota's sales figures look low. This was unheard of and is completely new in Malaysia. The problem is with the Toyota management's approach in handling the product planning and sales in South East Asia. Among the South East Asian countries such as Thailand, Malaysia, Indonesia, Philippines and Vietnam. Malaysia has the most matured automotive industry and having English as one of its main language makes it easier for information to be shared.
Toyota took the conservative route in the last 20 years and have been dumping out of date technology into the region. The models which are sold are usually assembled in either Thailand, Malaysia (previously) and Indonesia. The models usually will carry very old engines and transmissions and old chassis. Models like the Vios may be current in Asia but the engines are over 20 years old. This is the same for the Innova. It may sell well in Indonesia but the buyers in Malaysia are becoming more discerning and they have moved on. Toyota ended up catering for the older generation that still believe in the Toyota brand regardless if the car has new or old technology.
Honda on the other hand decided to push forward with innovative designs and caught Toyota napping. The models like the HR-V and the BR-V have been a great success. The HR-V alone sold more than 11,000 units since its launch last year. The Honda Civic is also a run away success with the new design that has captured the interest of many young buyers.
Toyota is not set to introduce any new models this year and this could be a real problem for them. No new models means no new interest and this would definitely affect their sales. The new models will only introduced in 2018 and that being the new CH-R. It may be a little too late since Honda would have taken the bulk of their customers a year ahead.
I am not sure why Toyota is so conservative but with the younger generation looking for more trendy cars and innovative designs, Toyota is struggling to follow.
Toyota took the conservative route in the last 20 years and have been dumping out of date technology into the region. The models which are sold are usually assembled in either Thailand, Malaysia (previously) and Indonesia. The models usually will carry very old engines and transmissions and old chassis. Models like the Vios may be current in Asia but the engines are over 20 years old. This is the same for the Innova. It may sell well in Indonesia but the buyers in Malaysia are becoming more discerning and they have moved on. Toyota ended up catering for the older generation that still believe in the Toyota brand regardless if the car has new or old technology.
Honda on the other hand decided to push forward with innovative designs and caught Toyota napping. The models like the HR-V and the BR-V have been a great success. The HR-V alone sold more than 11,000 units since its launch last year. The Honda Civic is also a run away success with the new design that has captured the interest of many young buyers.
Toyota is not set to introduce any new models this year and this could be a real problem for them. No new models means no new interest and this would definitely affect their sales. The new models will only introduced in 2018 and that being the new CH-R. It may be a little too late since Honda would have taken the bulk of their customers a year ahead.
I am not sure why Toyota is so conservative but with the younger generation looking for more trendy cars and innovative designs, Toyota is struggling to follow.
Flying cars are coming and drones
The idea of the flying car is not new. We all saw concepts and ideas of flying cars in movies more than 30 years ago. We all even saw flying cars in cartoons like the Jetsons. Flying cars is definitely something many people are looking forward to but the pitfalls are waiting for them. Like Elon Musk said it is far too dangerous for it to work in reality. The reason for it is that in the event the engines or propulsion systems fail the car will simply fall out of the sky and crash killing the occupants and anybody directly below.
Unlike normal cars, the flying car has no road or track for it to rest on. The fail safe system is only as good as the design and the reliability of the hardware. Traffic congestion is the main reason for the flying car to potentially become a reality soon. Several companies have developed working prototypes that can land and take off almost vertically and have an operating range of up to 600km at a speed of up to 300km/h. A Chinese inventor also developed a small flying car based on drones using 4 large propellers to provide lift and forward propulsion.
I don't foresee flying cars to be a reality for at least another 15 years unless the regulators can agree on a specific safety and operating standard. It is not easy for all regulatory bodies to agree and also for legal liabilities associated with it. Some of the big companies like Google and Apple are rumoured to have invested in Flying Car technology. Chinese company that owns Geely is said to have bought over an American company that has the working flying car prototype. It is undoubtedly a bold move but is the public ready for this?
Like cars on the road, the movement and travel of the flying car has to be monitored and control. Without any flow control it cause congestion in the air as well as on the ground. I know many who would dream of using a flying car as their daily means of transport to avoid traffic especially in heavily congested cities like LA, tokyo, Manila. Bangkok, Jakarta or New York.
The cost will be a prohibiting factor for the time being since the first prototype was a quoted at over US$200,000 each. Only the rich will be able to afford it and it will take time for the cost to drop before it is more affordable for the masses.
The other possibility is the creation of a larger drone capable of carrying 1 or 2 persons. this may be a more simple approach however it will still need to be regulated. Simply building and selling it won't be practical and when accidents happen it may cause it to be banned. For now, the flying car is still nothing but a dream but this dream may become a reality sooner than we know.
Unlike normal cars, the flying car has no road or track for it to rest on. The fail safe system is only as good as the design and the reliability of the hardware. Traffic congestion is the main reason for the flying car to potentially become a reality soon. Several companies have developed working prototypes that can land and take off almost vertically and have an operating range of up to 600km at a speed of up to 300km/h. A Chinese inventor also developed a small flying car based on drones using 4 large propellers to provide lift and forward propulsion.
I don't foresee flying cars to be a reality for at least another 15 years unless the regulators can agree on a specific safety and operating standard. It is not easy for all regulatory bodies to agree and also for legal liabilities associated with it. Some of the big companies like Google and Apple are rumoured to have invested in Flying Car technology. Chinese company that owns Geely is said to have bought over an American company that has the working flying car prototype. It is undoubtedly a bold move but is the public ready for this?
Like cars on the road, the movement and travel of the flying car has to be monitored and control. Without any flow control it cause congestion in the air as well as on the ground. I know many who would dream of using a flying car as their daily means of transport to avoid traffic especially in heavily congested cities like LA, tokyo, Manila. Bangkok, Jakarta or New York.
The cost will be a prohibiting factor for the time being since the first prototype was a quoted at over US$200,000 each. Only the rich will be able to afford it and it will take time for the cost to drop before it is more affordable for the masses.
The other possibility is the creation of a larger drone capable of carrying 1 or 2 persons. this may be a more simple approach however it will still need to be regulated. Simply building and selling it won't be practical and when accidents happen it may cause it to be banned. For now, the flying car is still nothing but a dream but this dream may become a reality sooner than we know.
Tuesday 4 July 2017
Takuma Sato's Indy 500 victory
Indy 500 is by far one of the most coveted and most prestigious race events in the racing calendar. It is also extremely gruelling since the drivers have to drive hundreds of laps and stay focused for more than 2 hours. Very often the race will have numerous big accidents and many restarts. This year's race was no exception. The main difference with this year's race is that the winner was no other than the former F1 driver Takuma Sato.
Takuma Sato has been in Indy car racing since he left F1 and did not have a lot of success winning only 1 previous race and coming extreme close to winning the Indy 500 many years ago when he spun out on the last lap trying to pass Dario Franchitti. He has since learnt a lot about patience and timing his actions. This Indy 500 win is by far his biggest victory ever and it is celebrated by Japan. Takuma Sato is the first winner of Asian descent in Indy car and first Japanese to ever with the Indy 500.
This victory also means a lot for Honda which is the main engine supplier for his team. Honda has been at the receiving end of bad news since end of 2016 for producing poor F1 engines for the Mclaren team and also the frustration that Fernando Alonso was going through in F1 and in his maiden drive in Indy car.
The victory also boosted the popularity of Indy car in Japan all of a sudden and many young up coming drivers now are more eager and more driven to excel in motorsports. The flip side of this victor is that there were some racial backlash from racist journalist and racist fans. Some went as far as to comment that the Indy 500 should have been won by a white driver since the race was held on Memorial weekend which commemorates the veterans who died in World War 2. This of course is ridiculous since the race can be won by any driver regardless of nationality or ethnicity.
Many fans were upset at the racist comments made by some sports journalist and have called for the racist journalist to be fired or at least issue an apology. Racing or motorsports should never be race based and stereotyping is also wrong. In the past many Americans would say that oriental people can't drive because there are not nearly as many Asians in motorsports and not many compete at the top level with the exception of drifting where it came from Japan and is dominated by Japanese drivers. Takuma Sato's victory also shuts up many people who would stereotype orientals can't drive. This really puts on a new topic for them to talk about and possibly start to change the mind set of the fans.
Takuma Sato has been in Indy car racing since he left F1 and did not have a lot of success winning only 1 previous race and coming extreme close to winning the Indy 500 many years ago when he spun out on the last lap trying to pass Dario Franchitti. He has since learnt a lot about patience and timing his actions. This Indy 500 win is by far his biggest victory ever and it is celebrated by Japan. Takuma Sato is the first winner of Asian descent in Indy car and first Japanese to ever with the Indy 500.
This victory also means a lot for Honda which is the main engine supplier for his team. Honda has been at the receiving end of bad news since end of 2016 for producing poor F1 engines for the Mclaren team and also the frustration that Fernando Alonso was going through in F1 and in his maiden drive in Indy car.
The victory also boosted the popularity of Indy car in Japan all of a sudden and many young up coming drivers now are more eager and more driven to excel in motorsports. The flip side of this victor is that there were some racial backlash from racist journalist and racist fans. Some went as far as to comment that the Indy 500 should have been won by a white driver since the race was held on Memorial weekend which commemorates the veterans who died in World War 2. This of course is ridiculous since the race can be won by any driver regardless of nationality or ethnicity.
Many fans were upset at the racist comments made by some sports journalist and have called for the racist journalist to be fired or at least issue an apology. Racing or motorsports should never be race based and stereotyping is also wrong. In the past many Americans would say that oriental people can't drive because there are not nearly as many Asians in motorsports and not many compete at the top level with the exception of drifting where it came from Japan and is dominated by Japanese drivers. Takuma Sato's victory also shuts up many people who would stereotype orientals can't drive. This really puts on a new topic for them to talk about and possibly start to change the mind set of the fans.
Recent spate of super car crashes in Malaysia
Hot in the news over the last few weeks have been the sudden increase in the number of high profile accidents involving super cars. The super cars that were crashed range from Ferrari 458, Porsche 911, Audi R8 and most recently Lamborghini Aventador driven by the owner's 16 year old son without a license!!
Super car crashed are nothing new and it happens all over the world. The strange thing about this recent trend is that all of a sudden social media is alive with all these postings. All this also boils down to the key point about having the money to buy but not necessarily knowing or having the skill to drive these cars, furthermore these cars shouldn't be driven like it is stolen on the streets since there are too many unknown safety factors and the presence of other traffic.
The roads in Malaysia are not the best and definitely not the safest couple that with the lack of skill to really drive the cars with so much power. 90% of these super cars on the road are bought to show off rather than to drive fast and when it is driven fast the owner doesn't know how to drive it fast in a controlled manner. Showing off is one of the key problems since the driver often will have 500-600hp at their disposal they automatically think that flooring the throttle will allow them to go faster than other cars. Being able to go fast and doing it under the right conditions are 2 different things.
There are numerous videos on Youtube to show stupidity of drivers with their cars. There are many videos showing a stream of cars coming out of a side street (possibly after a gathering or an event) and they start to accelerate hard, the car's tail starts to fish tail and slide all over and the owner cannot control it and ends up crashing it into other cars or in the bush or into a tree while many people are watching. It is not only embarrassing but it also shows the lack of self control and knowledge. There are also videos from Italy showing a guy test driving a Ferrari with some friends and ends up crashing it into a wall when he decides to show what he can do with the car.
The super car's power and torque is tremendous and it has to be treated with respect or it will bite back. The driver sometimes do not anticipate the sudden surge of power or torque which can cause the rear tyres to lose traction making the car fish tail or go side ways and which usually ends up with the driver over correcting the steering or slamming on the brakes which amplifies the problem or creates another problem.
At the end of the day, the driver who has the money to buy such powerful cars really need to get their egos checked and invest the money into driver training before showing what they can do with their powerful machines. there is no glory is crashing and definitely no glory when you kill yourself or others while trying to show off!
Super car crashed are nothing new and it happens all over the world. The strange thing about this recent trend is that all of a sudden social media is alive with all these postings. All this also boils down to the key point about having the money to buy but not necessarily knowing or having the skill to drive these cars, furthermore these cars shouldn't be driven like it is stolen on the streets since there are too many unknown safety factors and the presence of other traffic.
The roads in Malaysia are not the best and definitely not the safest couple that with the lack of skill to really drive the cars with so much power. 90% of these super cars on the road are bought to show off rather than to drive fast and when it is driven fast the owner doesn't know how to drive it fast in a controlled manner. Showing off is one of the key problems since the driver often will have 500-600hp at their disposal they automatically think that flooring the throttle will allow them to go faster than other cars. Being able to go fast and doing it under the right conditions are 2 different things.
There are numerous videos on Youtube to show stupidity of drivers with their cars. There are many videos showing a stream of cars coming out of a side street (possibly after a gathering or an event) and they start to accelerate hard, the car's tail starts to fish tail and slide all over and the owner cannot control it and ends up crashing it into other cars or in the bush or into a tree while many people are watching. It is not only embarrassing but it also shows the lack of self control and knowledge. There are also videos from Italy showing a guy test driving a Ferrari with some friends and ends up crashing it into a wall when he decides to show what he can do with the car.
The super car's power and torque is tremendous and it has to be treated with respect or it will bite back. The driver sometimes do not anticipate the sudden surge of power or torque which can cause the rear tyres to lose traction making the car fish tail or go side ways and which usually ends up with the driver over correcting the steering or slamming on the brakes which amplifies the problem or creates another problem.
At the end of the day, the driver who has the money to buy such powerful cars really need to get their egos checked and invest the money into driver training before showing what they can do with their powerful machines. there is no glory is crashing and definitely no glory when you kill yourself or others while trying to show off!
Subscribe to:
Posts (Atom)