Toyota Kirloskar Pulls Plug On Yaris Sedan After Three Years As Sales Dip

Toyota Kirloskar Motor (TKM) will stop making the Yaris with effect from Monday, amid falling sales and shifting buyer preferences from sedans to SUVs. The local arm of the Japanese carmaker had launched the premium mid-size sedan three years ago to take on the likes of Honda City, Hyundai Verna among others.

The phase-out of the Yaris is also part of the larger global strategy under which Toyota Motor Co and Suzuki Motor Corp have been sharing products for India and neighboring markets.

Much like the Toyota Glanza and Urban Cruiser, which are the re-badged versions of the Suzuki Baleno and the Brezza, Toyota will get the new generation Suzuki Ciaz, expected to be launched during the festive season this year.

The phasing out of the sedan, said TKM, is part of the company's product strategy "to continue to cater to the ever-evolving needs of the customer through enhanced technologies and product offerings". Preparations are underway to launch new Toyota models in the coming new year 2022, the company said in the statement.

To be sure, both Ciaz and Yaris addressed the same segment. Therefore, it made little sense after the alliance to continue selling a low-selling under-performing model.

The Yaris broke cover at the Auto Expo in 2018 and was aimed at getting newer buyers, who couldn't afford a Toyota model, in its fold. But it failed to attract buyers. As compared to rivals Honda City and Hyundai Verna that sell an average 1,200-1,300 units, the Yaris' sold less than 600 units a month.

It didn't help that the buyer preference has been shifting rapidly to compact and midsize SUVs. The segment accounts for a third of total passenger vehicle sales in the country.

The Yaris lacked crucial aspects such as rear leg space. Whatever little chance it had, was marred by the Urban Cruiser and Glanza, says Avik Chattopadhyay, co-founder Expereal, a brand consulting firm. “The Yaris was pitched as a more affordable Toyota but that pitch got diluted with the launch of the Suzuki re-badged models, which were roomier, better and also less expensive, '' he pointed out.

Moreover, Toyota and Suzuki had tasted success with the Glanza and Urban Cruiser and re-badging a third product reinforced the strategy, says Puneet Gupta, Director, I.H.S Markit, a sales forecast and market research firm. For Toyota, which was struggling to clock higher volumes in India's competitive passenger vehicle market, cross-badging has worked really well, he said.

The latest move by Toyota, is also prompted by the rapidly changing priorities of the global automakers, he said. “They (automakers) would rather conserve their resources on new technologies like electric or hybrid. No one is keen on investing in ICE (internal combustion engine) only markets any more,” he said.

Toyota said, it will continue to seamlessly cater to all Yaris customers’ needs through our dealer service outlets across the country, along with the promise of availability of Toyota genuine spare parts for minimum next 10 years on this discontinued model, it said.

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