Toyota is a brand that sells millions of cars around the world. The brand journey was initiated in 1937. There are 26 countries where the production of Toyota cars takes place. But most of the plant’s production takes place in Japan as it is the originating country of Toyota. Toyota has six motor plants in Europe that are mainly for Corolla, Camry, CH-R, Rav4, Yaris, Aygo and Land Cruiser.
There are a total of 170 countries where the vehicles are sold worldwide and produce around 10 million cars in a year. Why is Toyota unpopular in Europe with so many production plants and sales? Any guesses? I will tell you the reasons for the unpopularity of Toyota and also the countries where Toyota is popular, some interesting points about Toyota and Europe, and also the reasons for its popularity in the rest of the world.
Interesting Fact: Toyota is the world’s most searched car brand of 2021.
In Which Countries Toyota is Popular?
Toyota is a popular brand in 33 countries. The originating country, Japan, is the leading country where Toyota is popular. In addition, there are 19 Asian countries: Brunei, Bahrain, Indonesia, Jordan, Kazakhstan, Kuwait, Lebanon, Oman, Pakistan, the Philippines, Qatar, Singapore, Thailand, United Arab Emirates, Vietnam, and Yemen. The administrative Region of China and Hong Kong are among the countries where Toyota is highly popular.
Toyota cars are also popular in the USA where models like Camry, Rav4, Corolla, Highlander, and Tacoma, are in the top 15 selling cars in the USA, with about 1.5 Millions cars of only these models are sold in 2021!
Why Toyota is Popular in the USA and many countries of the World?
There are a plethora of reasons that makes Toyota popular in many countries of the world, so let us find out what some of these reasons :
Most car owners want to drive a car that doesn’t have any mechanics or electric problems. They want a car that could take them from point A to point B, and Toyota has done a great job in terms of reliability, Toyota is ranked number one as the Top reliable brand in new cars, used cars, and trucks.
The Toyota cars are durable; around eighty percent of Toyota cars purchased twenty years ago are still working well on roads. This gives us a clear vision that Toyota has good building materials that last longer than expected.
Lower tariffs in the USA
Most Toyota cars are manufactured in America which makes them less expensive in The USA than many other brands.
Economy/ Fuel efficiency
Toyota is one of the top brands in terms of innovation, efficiency, and economy. No other brand has more AWD and 4WD vehicles than Toyota.
Green Technology, which is a must for the environment, is the Toyota vehicles’ top priority. Toyota offers many green models that are either BEV or FCEV.
Europe and Toyota
The area covered by Europe is 10.18 million km square. Moving further, in 1963, Toyota started selling cars. Since 1990, over 9 billion crores have been invested by Toyota. Due to such a huge number, it leads to high employment in the sector. In 1971, the first vehicle of Toyota was made in Europe and licences were produced in Portugal. Further, in 1992 full production of cars and engines in the UK. Corolla, AYGO, Yaris, and C-HR Crossover are best-selling European models.
10 Reasons for Toyota not Popular in Europe
There are numerous reasons to prove the statement, but I will discuss 10 reasons that will clear you why Toyota is not so popular in Europe. These are as follows:
European Cars Are Cheaper
It is said that European cars are less priced than Toyota cars. The same features offered by the European cars are available at a low rate compared to Toyota cars. For example, the price of the Volkswagen Passat is less than the Toyota Camry. The Passat is cheaper than the Toyota cars, and everybody likes to save money, due to its high comparable price, it is not the number one choice in Europe.
Many Europeans prefer diesel over gasoline engines. Diesel engine cars consume less fuel, are more robust, and have fewer emissions than petrol engines. Further, in countries like Ireland and Italy, approximately 40% of cars with engines are diesel-powered. Toyota has a successful petrol engine, so they have chosen to prefer petrol over a diesel engine. while People in Europe prefer diesel engines over petrol; that’s another reason why Toyota is not so popular in Europe.
People tend to buy cars that are manufactured in their home country. That is why Porsche is sold in Germany, Nissan in Spain, Ferrari in Italy, Peugeot in France, and Skoda is leading in the Czech Republic. Domestic carmakers give the best deals and get cheaper spare parts conveniently and easy servicing of cars. The cars that are produced in Europe are the first choice for Europeans, and Toyota is mostly manufactured in Japan and USA and has maximum sales in those countries.
Multiple brands launch numerous cars with gorgeous styles. The luxury car is everybody’s dream, and if one can get that within budget, why will that person not buy it. Youngsters want a car that is beautiful from the outside and full of features. Toyota offers comfort, but that is not the preference of the individuals that are residing in Europe. Toyota is not a stylish car with a luxury interior. This is the reason for Toyota is not so popular in Europe.
Toyota’s cars are manufactured in Europe, but many parts are imported from Japan and North America. To get similar car parts in Europe, a tax is needed to be paid, which is an Ad valorem tax in which a certain proportion of the value of a product is to be taxed. Due to the high manufacturing cost, the selling price of the product also escalates. Due to the high selling price, the people have shifted to other luxurious brands: Audi, BMW, Mercedes, and Volvo. The high selling price due to the tariffs makes Toyota unpopular in Europe.
The car with domestic manufacturing is more valued in the country in many terms, such as price, quality, and reliability. The more the number of vehicle plants, the cheaper will be the manufacturing cost. There are six vehicle plants of Toyota in Europe, around 118 Volkswagen plants, and around 31 plants of BMW. So this makes Toyota’s cars more costly than other brands and unpopular in Europe.
The most vital thing that is considered at the time of purchase is the resale value; the car should have some financial value at the time of sale. Every user gets bored with the car, or new cars are launched with new features. At that point, the user thinks about selling his car, and Toyota has a lower resale value as compared to the European cars like Audi, BMW, and Mercedez, as people in Europe prefer luxury cars.
Security/ Safety Features
The top priority of a car is safety. There are several European cars like Mercedes, BMW, Audi, and Volvo, and all have higher safety features as compared to Toyota in the year 2020. Toyota’s cars have safety features but are less apt than European cars.
Many luxury cars are fully packed with technology; they give excellent features such as Ventilated Seats, 3-Zone Automatic Climate Control, Dynamic Steering, Smart Ambient Lighting, and Semi-Autonomous Driving. Toyota is a brand full of technology, but other cars are more updated and have more features. When comparing brands, Toyota gets fewer marks and is not a popular brand in Europe.
The market is not always the same; it changes with time and new companies with innovative technology in every field. The same happened with cars; also, Kia and Hyundai have taken the market due to their less costly cars with great features that give that feeling of luxury and comfort. New competitors launching cars full of new features get more market compared to older brands. This is why Toyota is unpopular in Europe as new brands are taking its position.
The car is not bought only to move from one point to another but for comfort and luxury. People who buy Audi or BMW get luxury, comfort, and transportation all the three things together, but if we talk about Toyota, they offer functionality over interiors. People want bland interior and functionality, which is why Toyota is unpopular in Europe.
European cars make the best cars in the world. Porsche, BMW, Ferrari, Audi, and there are endless cars. Numerous European cars have high brand prestige. There are no chances that Toyota can compete with European cars. A person’s status, if he is owing an Audi or BMW, cannot get with Toyota, so people prefer to buy a luxury car over an ordinary one.
Toyota is a world-famous company for cars, and there are many countries where the brand is ranked number one, but talking about Europe, there are other cars such as Volkswagen, BMW, Audi, Mercedez, and Volvo that provide both luxury and comfort in their cars at the same price as compared to Toyota that only gives you comfort, and durability in cars and not the luxury that for many people is vital. These are some of the reasons that make it clear why Toyota is not popular in Europe but is one of the top-ranked brands in the rest of the world.