Why Toyota Gets Away With Pricing Its Cars and SUVs So High

Toyota has long been known for producing reliable, durable, and high-quality vehicles that stand the test of time. Among their most popular models in the Indian market are the Innova Crysta and Fortuner. While these vehicles come with a higher price tag compared to their competitors, their exceptional reliability and impressive resale value make them a worthwhile investment for discerning buyers.

Reliability

The Hallmark of a Toyota One of the primary reasons behind the premium pricing of the Innova Crysta and Fortuner is their unparalleled reliability. Toyota has a well-earned reputation for building vehicles that are engineered to last, with minimal maintenance requirements and few breakdowns. This reliability is a result of Toyota’s meticulous attention to detail, stringent quality control measures, and the use of high-quality components in their manufacturing process.

Resale Value

The Toyota Advantage: Another significant factor that justifies the higher prices of the Innova Crysta and Fortuner is their exceptional resale value. Toyota vehicles are known to hold their value better than most other brands in the market, and this is particularly true for these two models.

Let’s take a closer look at the Toyota Fortuner. In 2016-2017, the Fortuner MT Petrol was priced at Rs. 28.18 lakhs (ex-showroom). Fast forward to 2023, and the same variant is now priced at Rs. 33.43 lakhs (ex-showroom), representing a price increase of approximately 18.5% over six to seven years.

Despite this increase, the Fortuner continues to be in high demand, both in the new and used car markets. A quick search on a leading used car website reveals that the cheapest available Toyota Fortuner MT Petrol, with 97,000 km on the odometer, is priced at Rs. 22 lakhs. This means that even after six to seven years and nearly 100,000 km of usage, the Fortuner has retained around 78% of its original value, which is a remarkable feat.

Similarly, the Innova Crysta has showcased impressive resale value. When it was first launched in 2016, the base model was priced at around Rs. 13.8 lakhs (ex-showroom). In 2021, the same model was priced at approximately Rs. 16.5 lakhs, representing a price increase of nearly 20% over five years.

Despite this increase, a well-maintained 2016 Innova Crysta can still fetch upwards of Rs. 12 lakhs in the used car market, which is around 75-80% of its original value. This is a testament to the vehicle’s enduring quality and desirability.

Long-Term Value Proposition

While the initial purchase price of the Innova Crysta and Fortuner may seem steep, it is essential to consider the long-term value proposition they offer. With their exceptional reliability, these vehicles are less likely to require expensive repairs or frequent maintenance, resulting in lower ownership costs over time.

Moreover, the strong resale value of these Toyota models means that owners can recover a significant portion of their initial investment when it comes time to sell or trade in their vehicle. For instance, if you were to purchase a new Fortuner MT Petrol for Rs. 33.43 lakhs and sell it after six years for Rs. 22 lakhs, you would have effectively paid only Rs. 11.43 lakhs for six years of ownership. This makes the Innova Crysta and Fortuner attractive options for buyers who prioritize long-term value over short-term savings.

The premium pricing of the Toyota Innova Crysta and Fortuner is justified by their unmatched reliability and exceptional resale value. These vehicles are built to last, with a focus on quality, durability, and performance that sets them apart from their competitors. The data on price increases and strong resale values further reinforces the long-term value proposition offered by these Toyota models, making them a smart choice for discerning buyers who prioritize quality, reliability, and peace of mind. The high resale value of these vehicles effectively justifies their higher initial purchase price, as owners can recover a significant portion of their investment when it comes time to sell or trade in their vehicle.