Toyota’s New Strategic Pride to Arrive in Vietnam with an Unexpected Version Cut: What’s the Implication?

In early April, Toyota Vietnam announced the distribution of the 2024 Corolla Cross, discontinuing one of its gasoline-only versions.

Specifically, Toyota’s announcement states that the 2024 Corolla Cross will officially go on sale from May 6 with two versions, the Corolla Cross 1.8 HEV and the Corolla Cross 1.8 Gasoline. Toyota’s announcement also states that these two versions will have retail prices starting from 905 million VND and 820 million VND, respectively; with the pearl white color costing 8 million VND more.

Meanwhile, the 2023 Corolla Cross currently being distributed in Vietnam has three versions, including two gasoline-only versions and one hybrid version. Thus, Toyota has eliminated one gasoline-only version for this model.

Toyota says the 2024 model is an upgraded version, featuring significant changes to both the exterior and the car’s features. The 2024 Toyota Corolla Cross will have a redesigned grille, said to be inspired by a honeycomb. In addition, the 2024 Toyota Corolla Cross will have minor changes to the headlight design.

In terms of amenities and convenience features, the 2024 Toyota Corolla Cross will have a 12.3-inch entertainment screen (the current version is only 10 inches), an electronic parking brake and Auto Hold (automatic brake hold). Some other changes include a reverse brake assist feature and a wireless phone charging tray.

In Vietnam, the Toyota Corolla Cross is one of the notable high-riding models. This model belongs to the B+ segment, which is between the B class of KIA Seltos or Hyundai Creta, and the C class of Mazda CX-5 or Hyundai Tucson.

The Toyota Corolla Cross is imported completely from Thailand and has been officially distributed since 2020. This model has repeatedly led in sales, but due to pressure from competitors, the Toyota Corolla Cross has not been able to maintain its position. To date, Toyota has sold about 57,000 units of the Corolla Cross.

If we only consider the Corolla Cross, Toyota’s decision to cut one version also means giving customers one less option, which could further drive down sales of this model. However, if we look at Toyota’s overall strategy, eliminating one version is actually quite reasonable.

The most likely answer to this strategy is hybrid.

Toyota went down in automotive history with the first mass-produced hybrid car, the Prius, which officially went on sale in 1997. Since then, Toyota has invested heavily in this technology. Hybrid technology is a technology that combines an internal combustion engine (usually gasoline) with an electric motor, helping to significantly reduce fuel consumption, saving operating costs and reducing environmental pollution.

In recent years, when electric vehicles are the new development trend, Toyota still bets on hybrid vehicles in its strategy to provide customers with a variety of options to reduce greenhouse gases, alongside vehicle lines such as hydrogen-powered vehicles and pure electric vehicles.

This has helped Toyota achieve very high profits in 2023; while many other manufacturers have recorded a decline in profits, or even losses, due to investing in pure electric vehicles.

In an informal discussion, a Toyota Vietnam senior executive said that hybrid vehicles will be a development focus in the domestic market this year. This strategy will give the market more new hybrid options, but this person did not provide more specific information.

Worldwide, Toyota has eliminated all gasoline-only versions of the Camry, making hybrid the only engine option customers can choose.

Thus, it is clear that Toyota seems to be testing customers’ willingness to embrace hybrids, so it has adopted more “hardline” strategies: From being just an option, now becoming a necessity, or becoming an option with a higher encouragement to choose – similar to the Corolla Cross in Vietnam.

Photo: Motor1