The Toyota Innova has so far been the undisputed king of the multi-utility vehicle segment selling an average of 6,600 units a month since the start of 2012. But since April, there have been a series of launches in its segment starting with the Maruti Ertiga, Nissan Evalia and Mahindra Quanto. Has this had an effect on the Toyota Innova’s value proposition?
CarToq takes a status check.
One point is clear, the Nissan Evalia, Maruti Ertiga and Mahindra Quanto are all cheaper than the Toyota Innova. The Mahindra Quanto is the cheapest of the lot, with prices ranging between Rs. 5.9 lakh and Rs. 7.6 lakh. The Maruti Ertiga is available in both petrol and diesel with prices starting at Rs. 5.95 lakh going up to Rs. 8.65 lakh. The Nissan Evalia is the latest launch in the market with a price range between Rs. 8.5 lakh and Rs. 10 lakh. The Innova is still at a premium to all these vehicles with prices ranging between Rs. 9.4 lakh to Rs. 13.9 lakh.
However, when you look at the sales figures, there appears to be no dent to the Innova’s sales after the launch of the Maruti Ertiga in April 2012. In May, the Maruti Ertiga overtook the Innova, selling just a few more units. The Ertiga has been selling an average of 6,400 units a month, while the Innova’s sales continue to average about 6,500 units a month. So, no impact there. If anything, the market for MUVs has only expanded since the Ertiga joined the ranks. Also read: Quanto vs Ertiga
How about second-hand Innova prices? A quick check in the second-hand car market reveals that the Toyota Innova continues to command a very good price in the used car market. A two-year-old Toyota Innova V with about 50,000 km on the odometer has an asking price of Rs. 11 lakh, considering the ex-showroom price of a new one is about Rs. 13.8 lakh. A four-year old Innova V has a market price of about Rs. 8.5 lakh, which is still at a premium to some of the new MUVs that have come into the market. Also read: Nissan Evalia road test
What is it about the Toyota Innova that makes it continue to hold its value despite the onset of competition in the market? It’s not great value-for-money when you look at features and price, but still it command a premium. The only plausible explanation is the brand name and the reputation of reliability that the vehicle has achieved. Commercial cab operators swear by it, and it’s not uncommon to find Toyota Innovas with over 3 lakh km on the odometer still running quite trouble free with only regular maintenance. Also read: Innova vs Xylo vs Ertiga
So has the Innova been affected by the Ertiga, Evalia and Quanto? It’s still early days, but it really doesn’t seem like the Innova has been affected. If at all, the market for MUVs has only grown further.