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Toyota took the conservative route in the last 20 years and have been dumping out of date technology into the region.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.