Toyota ‘has 35% share of Saudi market’

LONDON: Why has Toyota opted for Hybrids rather than electric vehicles? Is Toyota promoting hybrid technology in the region? And why are Toyota vehicles sometimes leaked to militant groups in the region? The answers to these questions, and more, are given by Takayuki Yoshitsugu, chief representative of Toyota Motor Corporation in the Middle East and North Africa.

Yoshitsugu is an industry veteran with 28 years of experience in the region and in Asia.
He confirms in this interview with Arab News that Toyota has 35 percent share of the Saudi market and explains why Land Cruiser is loved so much in the region.

These are highlights of the interview:

How did Toyota perform in the Middle East region in 2015 and what are the prospects for 2016?
2015 was an exciting and good year for Toyota in the Middle East.
We launched several new models such as the Camry, Hilux, LC200.
In the case of Lexus, we launched the NX, LX and RX. Overall, we received excellent customer feedback on the launches.
In 2016, the market demand will be affected by the low oil prices to some extent.
Our objective is to consistently provide higher customer satisfaction through our attractive product range with the added benefit of superior customer service.
We will, in cooperation with our distributors, continue to strengthen our customers’ trust through the absolute certainty and reassurance of Toyota ownership backed by our commitment to quality and constant innovation.

How important is the Saudi market for Toyota and how much of that market is Toyota’s share?
Saudi Arabia is definitely the biggest market for Toyota and by far our most important market.
We estimate our market share to be around 35 percent.
We greatly appreciate the support of our customers in Saudi Arabia and we thank them for their loyalty to the Toyota brand.

Has the decline in oil prices impacted your sales and operations in the region? Have you noticed any changes in patterns of sales of various models?
We managed to maintain a steady growth in sales in 2015.
However, the macro economic growth of the region has been affected by the economic slowdown and low oil prices have impacted sales to a certain extent.

How did the regional network of distributors change in the last few years and do you have plans for expansion of the network this year?
Our distributors have been investing in enhancing the sales and service network both in terms of quantity and quality in order to provide higher customer satisfaction and we will continue our efforts to bolster this even further in the future.

Why do you think Toyota has opted for hybrid and fuel-cell technology while most other companies have taken the electric option?
Toyota has a variety of environmental friendly technology including hybrid vehicles, fuel cell vehicles and electric vehicles.
We focused our efforts on hybrid vehicles where we achieved tremendous success with the Prius.
Subsequently, we also started developing next-generation vehicles utilizing alternative fuels such as electricity and hydrogen.
While we do have electric vehicles, they do require adequate infrastructure and at the moment they have limitations in terms of driving range.
Hybrid vehicles are the most practical solution as they do not need dedicated infrastructure.
Since October 2014 Toyota, together with several partners, has participated in an ultra compact electric vehicle car sharing project in the City of Grenoble, France.
Utilizing the i-Road and COMS electric vehicle. The Toyota i-Road is also being tested in a new car-sharing program in central Tokyo.
Toyota sees great potential in hydrogen and fuel cell vehicles which is why we started the sales of the Mirai in December 2014.
Till date, we have applied for nearly 100 patents to develop this ground breaking technology to support the environment.

Is Toyota promoting hybrid technology in the region? What do you think are the prospects for this technology in the region? Is the new C-HR coming to the region and if not why not?
Toyota is actively looking to promote environmentally friendly technology and hybrid technology is one such application.
We recently launched the Prius in the Middle East.
The new Prius represents the most advanced expression yet of Toyota’s commitment to making environmentally friendly vehicles while increasing the attractiveness of hybrids as desirable cars that are fun to drive and also eminently practical. Hybrid vehicles are considered as the most practical solution and we want to contribute significantly in terms of developing and promoting such environment friendly vehicles. Unfortunately, we cannot comment on the future plans for the C-HR at this point in time.

As the dominant car distributor in the region why hasn’t Toyota considered some manufacturing operations in the region, especially in Saudi Arabia?
Toyota is always considering better ways to provide higher customer satisfaction including improving the supply chain.
In terms of manufacturing operations, a decision on a significant undertaking like this involves multiple factors and consideration of the impact on the supply chain.

How do you think Toyota vehicles leak to conflict zones and end up with militants and violent groups?
Toyota has a strict policy to not sell vehicles to potential purchasers who may use or modify them for paramilitary or terrorist activities, and we have procedures and contractual commitments in place to help prevent our products from being diverted for unauthorized military use. 
However, it is impossible for any automaker to control indirect or illegal channels through which our vehicles could be misappropriated, stolen or re-sold by independent third parties.  We are committed to complying fully with the laws and regulations of each country or region where we operate, and require our dealers and distributors to do the same.

Is Toyota supporting any charity or safety initiatives in the region?
Toyota and our valued distributors undertake significant efforts in order to contribute to society and be active in the community.
For example in the Kingdom, ALJ (Abdul Latif Jameel) is very active in Saudi Arabia in the areas of job creation, education and training, road safety initiatives, health and social development etc.
In UAE, our distributor Al-Futtaim Motors has been involved in road safety initiatives where they have organized a number of educational off-road safety programs aimed at raising awareness about safe driving off-road and on desert terrains.

What is the secret of the Land Cruiser that is loved so much in the region?
We really appreciate the fact that so many customers choose Toyota vehicles in general and specially the Land Cruiser across the region.
Toyota is always working to provide ever better cars which exhibit the enduring attributes of performance, design, quality, durability and reliability that Toyota has become synonymous for.
With a pedigree that can be traced back over 60 years, the Land Cruiser commands customer loyalty because of the phenomenal all-terrain performance and reliability. With each successive generation, Toyota has aimed at strengthening the vehicle’s tradition of reliability, durability and off-road performance while improving the handling stability, ride comfort and driving pleasure.
Toyota’s exceptional after sales service is also a big advantage and adds to the popularity of the Land Cruiser.