GAC Toyota plans to create "Profit Synthesis" by investing more on China SUV market

Gasgoo.com (Shanghai Mar 30) – According to GAC Toyota, there might be one more SUV model imported to China after New Highlander, which would be probably from Toyota New Global Architecture. There may also be a small SUV  to be introduced in 2017.

In fact, GAC Toyota behaved quite well in Chinese  midsize SUV market by localized Highlander. With its excellent performance, New Highlander was put into the market. But it is unknown whether other SUV models of GAC Toyota could copy the development state of Highlander.

Mr. Li, executive vice-president of GAC Toyota, said to reporter in the launch event of New Highlander held in Mar. 20th, "The growth of Chinese SUV market keeps over 30% during the past 2 years. To the growth of 35% in 2014, small type SUV contributed most." But there is no model of GAC Toyota in this market, to which the small type SUV of GAC Toyota in the works aims. Mr. Li also said, "With the fierce competition in sentinel SUV, middle-large size SUV will be given more attention."

We could know the strategy of GAC Toyota is to hold the lead in middle-large SUV market by Highlander and to realized the development of all models in all SUV market segment step by step. Mr. Li also told reporter the appearance, space and trim of New Highlander are improved and power & security systems are also updated."

According to related information, New Highlander is equipped with newest, best 2.0TD-4ST engine of global Toyota.

As early as May, 2009, Highlander was localized then and defined middle-large SUV market. In the same year, it took only 5 months for Highlander to reach sales volume of 6,000 per month. In the past few years, the ratio of Highlander in section between 200,000 Yuan to 400,000 Yuan was as high as over 30% and as low as 10%. Although the performance of Highlander is quite good, GAC Toyota doesn't set a radical target caused related staff in GAC Toyota told report the sales volume of 6,000 to 7,000 is perfect. GAC Toyota plans to realize ideal development of its all models in all auto market segments, aiming to create "Profit Synthesis".

There is more work needs to be done for GAC Toyota to realize ideal state. According the sales status last year, GAC Toyota was leading in middle-large type market but was also facing tremendous pressure in small type market. With the release of New Highlander, GAC Toyota will keep leading in its market. But how to realize the structural adjustment and good sales volumes of both large and small models is the key to the strategy of GAC Toyota.