Yaris sales tank

[Yellow_Festiva]

Toyota Yaris sales drop by 75 per cent after $9500 price rise

Toyota Yaris sales have fallen to a fraction of their former glory, with deliveries down by 75 per cent in a market that fell by only 1.5 per cent last month.
The new-generation Toyota Yaris was released two months ago with a sharp price rise that saw Toyota vacate the sub-$20,000 segment for the first time since it officially began selling cars in Australia in 1959.

The previous Toyota Yaris hatch started from $15,990 drive-away for a base model with manual transmission and from $17,490 drive-away with automatic.

Although Toyota described this as a runout deal, the previous Yaris was in fact available for the better part of two years at this price.

The new Toyota Yaris costs from $25,500 drive-away, according to the manufacturer’s website, an increase of $9500.

Official sales figures for October 2020 show just 218 examples of the Toyota Yaris were reported as sold, compared to 863 for the same month last year.

https://www.drive.com.au/news/toyota...=homePageNews2

What would profit margins be?

863 cars @ $2000 profit per car is $1.726m

218 cars @ $8000 profit per car is $1.744m

Perhaps they are not losing as much financially from their pricing strategy as the sales figures suggest?

Having said that - big sales numbers mean more cars on the road (free advertising), the model at or near the top of popularity lists and more cars coming back for servicing.

I would never buy a Yaris at that price but more than I expected have parted with their money.

[jpd80]

In the USA, the 2020 Yaris (old model) has a starting price of US$15,560 which converts to AUS$22,500
or thereabouts, so kinda suggests that the sub $20k pricing was artificial and something intended to
stop sales leaking to Kia. The optics are bad but I think Toyota is accentuating that by abandoning
that previous policy of subsidising loss leading prices, I wonder if other manufacturers will follow
suit and give up on offering sub $20k vehicles...,.

[Wretched]

Would be interesting to see data around where those buyers went.
If they didn't get a Yaris, did they go elsewhere, did they go second hand or did the not get a car?
If they did indeed go somewhere else, there may be other issues for Toyota there. Going to a showroom for one car can lead to looking at other cars in the range for "future" buying.

[GT450]

I just received some details from Toyota regarding the new GR Yaris Rallye and it comes in at $46K before on roads. Nice little hatch but not that nice.

[xkxlxm]

$9,500 is a huge price increase; an increase of more than 50% on the base model.

[Bossxr8]

Who would have guessed that people largely will not pay 25k+ for a B car. Can get C cars for less than that.

But people better get used to this. Prices are going to rise across the board on smaller cars. Manufacturers are under a lot of price pressure now considering how much tech these cars are being fitted with, and the aussie dollar conversion isn't helping either.

[Sprintey]

Probably my favourite buzz box. "Slow car fast" etc etc

It's nice to know that if you increase prices over 50%, the market will ignore you.

Where they want to take it - is probably Yaris Cross. That's where the market is moving anyway, but what is that? About 30K? Also look to Corolla Cross coming in a couple of years.

And to think you could as recently as 2016 get an XR6 for about 35K driveaway... How far we've fallen.

[jpd80]

Originally Posted by Bossxr8

Who would have guessed that people largely will not pay 25k+ for a B car. Can get C cars for less than that.

But people better get used to this. Prices are going to rise across the board on smaller cars. Manufacturers are under a lot of price pressure now considering how much tech these cars are being fitted with, and the aussie dollar conversion isn't helping either.

The reason manufacturers are adding more standard tech features is so they can charge more, it’s a compulsory spend.

[XR Martin]

Rental car companies bought alot of Yaris', guess who's not buying many cars at the moment?

[Bossxr8]

Originally Posted by jpd80

The reason manufacturers are adding more standard tech features is so they can charge more, it’s a compulsory spend.

Safety tech to get 5 star ratings is also becoming compulsory now. It's all adding up to more $$$.

[Yellow_Festiva]

Originally Posted by jpd80

In the USA, the 2020 Yaris (old model) has a starting price of US$15,560 which converts to AUS$22,500
or thereabouts, so kinda suggests that the sub $20k pricing was artificial and something intended to
stop sales leaking to Kia. The optics are bad but I think Toyota is accentuating that by abandoning
that previous policy of subsidising loss leading prices, I wonder if other manufacturers will follow
suit and give up on offering sub $20k vehicles...,.

Could the difference be the fact small cars are not very popular in the US as well as the conversion to non standard driving side?

I think Toyota would have made some profit on the Yaris here - the model is not all that different to what is sold in Japan.

It would have also been designed and built as cheaply as possible to cater to the many lower markets it was sold in.

Toyota and Hyundai probably have the largest global market saturation - they know how to pump out good product and do it as efficiently as possible.

Just looked it up - Toyota sells to 140 countries.
Hyundai to 193 countries.
VW group - 153 countries.

I wonder.... The Yaris is probably the entry model in many developing countries - what will they sell the new model at in say India, Bangladesh, China and any other developing country where the average income is a fraction of ours?

Not the equivalent of $25k that's for sure.

I'll look it up - curious to see actually.

[Yellow_Festiva]

India:

Base model manual $16,400
Top model auto - $26,450

Yaris in India isn't the lowest model you can get - they seem to sell a re badged Baleno (Toyota Glanza) for about 15% less than the Yaris. )Perhaps that's why our Baleno isn't ANCAP rated?

China:

Base model manual $16,200
Top model auto - $21,600

Bangladesh has a weird currency and pricing structure - either I'm getting it wrong or they price cars like in Singapore where the price is astronomical compared to AUD.

Philippines: (surprising?!?)

Base model manual $25,600
Top model auto - $30,300

Seems the Yaris hatch in Philippines is touted as a premium city car as they also sell what looks like a sedan version called the Vios for between $19k and $30k.

I have no idea if these prices are DA or if you still need to pay delivery / taxes etc but that's what I found with some research on Google.

[Bossxr8]

Originally Posted by Yellow_Festiva

Could the difference be the fact small cars are not very popular in the US as well as the conversion to non standard driving side?

I think Toyota would have made some profit on the Yaris here - the model is not all that different to what is sold in Japan.

It would have also been designed and built as cheaply as possible to cater to the many lower markets it was sold in.

Toyota and Hyundai probably have the largest global market saturation - they know how to pump out good product and do it as efficiently as possible.

Just looked it up - Toyota sells to 140 countries.
Hyundai to 193 countries.
VW group - 153 countries.

I wonder.... The Yaris is probably the entry model in many developing countries - what will they sell the new model at in say India, Bangladesh, China and any other developing country where the average income is a fraction of ours?

Not the equivalent of $25k that's for sure.

I'll look it up - curious to see actually.

I would have thought Toyota sell in more than 140 countries. The Ranger alone sells in over 180. And Toyota are the worlds biggest car producer. Or close to it.

[Yellow_Festiva]

Originally Posted by Bossxr8

I would have thought Toyota sell in more than 140 countries. The Ranger alone sells in over 180. And Toyota are the worlds biggest car producer. Or close to it.

You could be right. I just went by what Wikipedia said.

Sent from my SM-G973F using Tapatalk

[Franco Cozzo]

With India and Asian countries they all scoot around on bikes so I imagine it's probably no big deal having your entry level ****box at $25K because 75% of the country can't even afford a car anyway and those who can use it as a status symbol.