Toyota Kirloskar India has just released a TVC that says that Toyota cars hold up to 68% of their original value even after 5 years of usage. The value shows that the Toyota branded vehicles retain a high value even after years of ownership. What does it mean and how do the Toyota vehicles keep such a high resale value? Let’s find out.
68% of value even after 5 years
Toyota India’s range starts from the Etios hatchback and goes up to the premium SUVs like the Land Cruiser. Toyota Innova Crysta is the largest selling vehicle of the Japanese manufacturer and is extremely popular in the Indian market. Here are a few examples of the best-selling Toyota cars that have retained near about claimed figure of resale value even after five years of ownership.
Toyota Innova: The Innova Crysta is extremely popular in the Indian market and is the first choice of car fleet owners. In 2013, the base variant of the Toyota Innova was priced at Rs. 12.4 lakh, ex-showroom. Here are three examples that are more than 68% of the original ex-showroom price. Example 1, Example 2, Example 3
Toyota Fortuner: Toyota Fortuner is the best selling vehicle in the segment and has a high demand in the market. Even though Toyota launched the all-new Fortuner in the market, there is still a strong demand for older first-generation Fortuner in the Indian market. In 2013, the Fortuner was priced between Rs. 20 lakhs and 21 lakhs in the market. Here are three examples that show the current value in the used car market of the brand. Example 1, Example 2, Example 3
Toyota Corolla Altis: The Corolla Altis takes on the likes of Hyundai Elantra, Skoda Octavia and newly launched Honda Civic in the Indian market. In 2011, the price of the Toyota Corolla Altis was roughly around Rs. 10.53 lakhs and Rs. 14.55 lakhs. Here are three examples which are 5 years or older and retain a minimum of 68% value of the ex-showroom price. Example 1, Example 2, Example 3
Why Toyota vehicles have such a high resale value?
There are quite a few factors for the high resale value of the Toyota vehicles. Here are a few reasons why Toyota vehicles retain such a high value even after so many years of ownership.
Trust in the brand
Toyota India started operations in 1997 and over the years, the care-free ownership stories of people have built trust in the market. There are numerous Toyota vehicles with lakhs of kilometres on the odometer and still working perfectly on the road. This is something that has built over the years and has made the Toyota brand a trustworthy brand in the Indian market.
Toyota offers extremely reliable engines, which is why most of the car fleet owners choose the Toyota vehicles. The 2.8-litre GD-Series diesel engine is one of the best diesel engines in the world. As per Toyota, the GD Series engines return a high thermal efficiency of 44 per cent and the 2.8-litre engine that powers the Innova and the Fortuner in the Indian market return a high efficiency of 44%, which is extremely good. All the engines offered by Toyota are very reliable and do not break down easily.
Price of new vehicles
The price of Toyota vehicles has gone up a lot in recent years. For example, the price of the brand-new base variant of the Innova Crysta is Rs. 14.83 lakh, ex-showroom, Delhi. The on-road price makes comes out to be quite high. This creates a major demand for used Toyota Innova in the market, which in turn increases the price of the vehicle.
Most Toyota vehicle owners buy vehicles for life. The buyers of Toyota vehicles mostly keep the vehicle for a long time, which creates a low supply in the used car market and increases the overall price of the vehicle.
The spare parts of Toyota vehicles, even if they are old and are replaced are not a major problem in India. The spare parts can be sourced without much problem, which makes the Toyota vehicles very easy to maintain even after years of ownership.
Reliable service network
Over the years, Toyota has built a trusted service network throughout the country, which gives a sense of trust to the buyers. Even while buying used vehicles, the wide service network and worry-free ownership experience induce confidence in the buyers.