Qualis to be phased out

By Our Corporate Bureau | 02 Feb 2005

Bangalore: Just when auto analysts were forecasting the imminent demise of the Toyota''s multi utility vehicle Qualis, the company has obliged them by announcing that the vehicle would be phased out, in favour of a new vehicle. Till date no automaker, not even Maruti Udyog Ltd, has ever wqithdrawn a popular product, barring Honda Motors. When Honda withdrew the popular Honda City, it was only to replace it with a newer version of the same brand. For Honda, the strategy paid off; sales of the new City are close to doubling up.

Toyota Kirloskar Motor has announced that its best-selling model, the Qualis, a favourite of private tourist taxi operators because of its spacious interiors, will be replaced by the Toyota Innova, built on the international motor vehicle (IMV) platform, combining the characteristics of an MPV with that of a passenger car. The Innova, launched in Indonesia last year, will be launched in India by the end of February 2005 and is expected to cost between Rs7 lakh and Rs8 lakh. The sales of the Qualis, in recent times have been falling and its market share had declined from 40 per cent in the MPV segment in 2001 to 32 per cent in 2003. Despite this, the Qualis remained the largest selling MPV in the domestic market.

Ever since its launch in 2000, a record 1.4 lakh Qualis vehicles have been sold. In 2004, Qualis sold 36,700 units and in December, when the company discontinued its production, sales reached 4,000 units, the highest ever in any single month, till date. According to A. Toyoshima, managing director, Toyota Kirloskar Motor, "The Qualis has been our mainstay in India for the past five years. It has provided the perfect platform for Toyota in this country, but we feel it is time to bring in newer products that will provide better value to the customer."

Despite the boxy appearance, the sales of the vehicle have been drive solely on its performance. Its success led other automakers to realise the potential of the MPV segment in the Indian market and rivals like the Tata Sumo, the Mahindra Bolero and the Scorpio soon followed. These later entrants, however, had a hard time catching up with the popularity of Qualis, the market leader. It is only recently that the GM Tavera and M&M''s Scorpio have considerably eroded the market share of the Qualis. Had Toyota Kirloskar continued with the Qualis, it is speulated, the new crossover vehicles like the Hyundai Getz, Ford Fusion and the upcoming Suzuki Swift could have further eroded its market share.