Toyota is facing a technical crisis in China

A few days ago, Toyota Motor (China) Investment Co., Ltd. (hereinafter referred to as Toyota China) announced the launch of a propaganda campaign called "smiles without carbon" to meet the global development vision announced by Toyota in March this year to enhance its brand image.

Since experiencing the global recall incident, Toyota Motor Corporation believes that the Toyota brand has experienced an unprecedented crisis of brand trust. As Toyota China in the emerging automobile market, this feeling is even more unforgettable. In March of this year, Toyota announced its global development vision, in which the key words are "For Your Happiness, Beyond Your Expectation," and a clear-cut "Promote Brand".

It is of course important to promote the brand as a long-term development strategy for the company. However, if the current trend of the Toyota brand in the Chinese market is merely to enhance the brand, it is definitely “too light”. Because after the recall crisis, Toyota is facing more than just the Chinese It is a brand trust crisis or a technical crisis.

In fact, after the global recall incident, the Chinese consumer’s questioning of the Toyota brand was not as serious as Toyota China expected. Although the market share of the Toyota brand in China declined, it was not obvious. At that time, it was considered “excellent”. The German cars represented by "Quality" did not completely occupy the market share that Toyota left behind. Over time, with the help of the Toyota brand's high quality sales service network created in the joint venture, the trust crisis of the Toyota brand was rapidly weakened, and the "Toyota brand crisis theory" no longer existed, but the market share decline did not stop. live. So, to be sure, Toyota's decline in China has another reason.

From 2005 to 2007 can be called Toyota's golden age in China. With the help of humanized design, fuel economy, and superior services, the Toyota brand is quickly catching up with other brands in China. General Motors and Volkswagen, Toyota's main rival, saw Toyota's success and accelerated its improvement in these areas.

Nowadays, GM and Volkswagen have formed a distinctive Chinese localization style in the appearance and interior design of their models, and the production process and after-sales service have also improved significantly. In terms of the original advantages of their respective brands, GM and the public did not ignore it. On the basis of scale advantages and brand building capabilities, GM has formed the most marketable brand and product system; after Volkswagen successfully launched the gold combination of “TSI+DSG” (turbocharged in-cylinder direct injection engine plus dual clutch transmission) , is gradually affecting the Chinese consumer's consumption concept.

Compared to GM and Volkswagen, Toyota’s development strategy in China appears too conservative and rests on its laurels. Today, Toyota's advantages in humanized design and service are already weak compared with its rivals. In terms of core technology, the "VVT" engine that Toyota is proud of is already worth mentioning, 4 speed and 5 speed. Transmission also became "old antiques."

At present, China’s auto consumption is shifting from “practicality-based” to “technical-based”. Under this consumption environment, Toyota is facing a technological crisis in China and wants to change its current presence in the Chinese market just by upgrading the brand. The dilemma is very difficult to achieve.