Toyota releases advert claiming stellar resale value of top offerings in India.

One of the leading automakers of the world, Japanese giant’s Indian arm, Toyota Kirloskar India has put forth an advert stating that even after using the company’s cars for half a decade, the products retain nearly 68% of their original value. So is there in fact any basis to the brand making such a statement, and if it exists, what are the reasons behind it?

No, Toyota is not making such claims out of thin air. Although, the portfolio of the brand doesn’t seem a lot big, but come to think of it, their range starts from affordable Etios hatch to the luxury Land Cruiser. Dominating the MPV segment, Toyota Innova Crysta pulls in the most number of units for the brand and is perhaps their most recognizable products after the Fortuner in the market. Taking a look at Innova Crysta:

We find that with a starting price of Rs. 12.4 lakh in the Indian market, Innova has always been a steady seller for the brand and we also found a few examples on our used car market where the MPV actually retained the 68% value as claimed by the brand in the video. Link 1, Link 2, Link 3

Then comes the brand’s best-selling SUV Fortuner.

One can also call it the national SUV of India as the Fortuner has constantly topped the sales charts in the full-size SUV segment. Despite the brand bringing in the newer version of the SUV, there is currently also a string demand for the older variants in the market. Similarly, we also found three models matching Toyota’s claims for this SUV as well. Link 1, Link 2Link 3

Coming to the premium sedan offered by the company Corolla Altis.

Corolla Altis has also been a good seller for the company in the market. Despite facing stiff competition in the market from formidable rivals, the sedan has raked in good numbers for the company. Similar to the other two models above, we find three examples of the sedan as well that match the company’s claims. Link 1Link 2Link 3

So now that we have found the company’s claims to be true what could be the reason behind Toyota’s models performing so good in the market? Let’s explore a few reasons.

Toyota Trust

Ever since starting out in 1997, the word of mouth about Toyota’s carefree ownership has definitely spread and created a strong reputation for the brand in the market. Not to mention that there are several Toyota badged cars on the road going strong even after travelling lakhs of kilometers. This has certainly cemented the trust of the brand in India.

Reliable Engines

It is a known fact, both globally and locally that Toyota’s engines are error-free and continue to run even after taking a lot of abuse. Toyota claims that its 2.8-litre GD-Series diesel engine has a thermal efficiency of 44 percent, which is one of the best in the industry. Apart from the reliability, the smooth nature and easy reparability of Toyota engines also add to the value of its cars.

Toyota’s Pricing

This has been the recent trend among Toyota’s vehicles, their updated models have seen their ex-showroom prices rise by a significant margin. This makes the on-road prices of the car also go up by a huge margin which in turn fuels the demand of a second hand Toyota car, hence jacking the used car prices up.

A Car for Life

A lot of Toyota’s customers do not wish to flip their car to the used market after a few years of ownership, instead they buy it for long term usage. This leads to the used car market see less and less Toyota cars by the day, which in turn again jacks the prices up.

Parts and Network

The wide and cheap availability of spare parts in India along with the very reliable and customer centric network of service centers also inspires a lot of confidence in the customers buying used cars of Toyota brand, and hence they are ready to pay a slight premium for the Toyota branding.

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