Why Toyota is Not Popular in Europe

Toyota is a brand that sells millions of cars around the world. The brand journey was initiated in 1937. There are 26 countries where the production of Toyota cars takes place. But most of the production of the plant takes place in Japan as it is the originating country of Toyota. Toyota has six motor plants in Europe that are mainly for Corolla, Camry, CH-R, Rav4, Yaris, Aygo, and Land Cruiser.

There are a total of 170 countries where the vehicles are sold in the world and produce around 10 million cars in a year. Why is Toyota unpopular in Europe with so many production plants and sales? Any guesses? I will tell you the reasons for the unpopularity of Toyota and also the countries where Toyota is popular, some interesting points about Toyota and Europe, and also the reasons for its popularity in the rest of the world.

Interesting Fact: Toyota is the world’s most searched car brand of 2021.

Countries Where Toyota is Popular

Toyota is a popular brand in 33 countries. The originating country, Japan, is the leading country where Toyota is popular. In addition to this, there are 19 Asian countries: Brunei, Bahrain, Indonesia, Jordan, Kazakhstan, Kuwait, Lebanon, Oman, Pakistan, the Philippines, Qatar, Singapore, Thailand, United Arab Emirates, Vietnam, and Yemen. The administrative Region of China and Hong Kong are among the countries where Toyota is highly popular.

Source: BBC

Reasons Why Toyota is Popular in Other Parts of the World

There are a plethora of reasons that makes Toyota popular in rest of the World, so let us find out what the reasons are:

• The Toyota cars are durable; around eighty percent of cars purchased twenty years ago are still working well on roads.
• If you plan to sell Toyota, you will get a good price at the time of resale.
• No other brand has more AWD and 4WD vehicles than Toyota.
• Toyota takes extra care of safety in cars. Toyota has more IIHS safety than any other brand.
• Most Toyota cars are manufactured in America and rank the highest among other brands.
• Toyota is the top brand in terms of innovation, efficiency, and economy.
• Toyota has the highest residual value. Leasing a Toyota makes sense for pocketbooks.
• Green Technology, which is a must for the environment, is the Toyota vehicles’ top priority.
• In terms of quality, Toyota can be ranked number one in terms of new cars, used cars, and trucks.

Source:wikkimedia.commons

Europe

Europe, a continent part of Eurasia, is in the Northern Hemisphere, most of which is in the Eastern Hemisphere. The area covered by Europe is 10.18 million km square. Moving further, in 1963, Toyota started selling cars. Since 1990, over 9 billion crores have been invested by Toyota. Due to such a huge number, it leads to high employment in the sector. In 1971, the first vehicle of Toyota was made in Europe, and licenses were produced in Portugal. Further, in 1992 full production of cars and engines in the UK. Corolla, AYGO, Yaris, and C-HR Crossover are best-selling European models.

Source:Mercedez-Benz of Newton

Reasons for Toyota not so Popular in Europe

There are numerous reasons to prove the statement but I will discuss 10 reasons that will clear you why Toyota is not so popular in Europe. These are as follows:

European Cars Are Cheaper

It is said that European cars are less priced than Toyota cars. The same features offered by the European cars are obtainable at a low rate compared to Toyota cars. For instance, the price of the 2017 Volkswagen Passat is less than the 2017 Toyota Camry. The Passat is $630 cheaper than the Toyota cars.

Style

There are multiple brands that launch numerous cars with ravishing styles. The luxury car is everybody’s dream and if one can get that within budget, why will that person not buy it. Toyota offers comfort but does not have stylish cars with a luxury interior. This is the reason for Toyota is not so popular in Europe.

Engine Preference

Diesel engine cars consume less fuel, are more robust, and have fewer emissions as compared to petrol engines. Further, in countries like Ireland and Italy, approximately 40% of cars with engines are diesel-powered. The brand Toyota has a successful petrol engine, so they have chosen petrol over a diesel engine. People prefer diesel engines over petrol, so Toyota is not so popular in Europe.

Patriotism

People prefer to buy cars that are manufactured in their home country. That is why Porsche is sold in Germany, Nissan in Spain, Ferrari in Italy, Peugeot in France, and Skoda is leading in the Czech Republic. Domestic carmakers give the best deals and also get cheaper spare parts conveniently and easy servicing of cars.

High Import Tariffs

Toyota’s cars are manufactured in Europe, but many parts are imported from Japan and North America. To get similar car parts in Europe, a tax is needed to be paid, which is an Ad valorem tax in which a certain proportion of the value of a product is to be taxed. Due to the high manufacturing cost, the selling price of the product also escalates. Due to the high selling price, the people have shifted to other luxurious brands: Audi, BMW, Mercedes, and Volvo. The high selling price due to the tariffs makes Toyota unpopular in Europe.

Production Line

The car with domestic production is more valued in the country in many terms, such as price, quality, and reliability. The more the number of vehicle plants, the cheaper will be the production cost. There are six vehicle plants of Toyota in Europe, around 118 Volkswagen plants, and around 31 plants of BMW. So this makes Toyota’s cars more costly than other brands and unpopular in Europe.

Source:Motor1.com

Resale Value

A car is purchased while considering the resale value. So the cars that get good resale value are purchased more. Mercedes, BMW, and Audi get more resale value than Toyota due to high resale value. Due to this reason, Toyota is unpopular in Europe.

Safety Features

The top priority of a car is safety. There are several European cars like Mercedes, BMW, Audi, and Volvo, and all have higher safety features as compared to Toyota in the year 2020. Toyota’s cars have safety features but are not as apt as European cars.

New Competitors

The market is not always the same, it changes with time and also new companies with the innovative technology in every field. The same happened with cars also, Kia and Hyundai have taken the market due to their less costly cars with great features that give that feeling of luxury and comfort.

Reliability

Toyota’s cars are reliable, but when we talk about reliability. Other brands like BMW or Audi offer many features along with reliability so this is why Toyota is unpopular in Europe compared to other brands.

Bland Interior

The car is not bought only to move from one point to another but for comfort and luxury. People who buy Audi or BMW get luxury, comfort, and transportation all the three things together, but if we talk about Toyota, they offer functionality over interiors. People want bland interior and functionality, which is why Toyota is unpopular in Europe.

Brand Prestige

European cars make the best cars in the world. Porsche, BMW, Ferrari, Audi, and there are endless cars. Numerous European cars have high brand prestige. There are no chances that Toyota can compete with European cars.

Source: CNET

Final Thought

Toyota is a world-famous company for cars, and there are many countries where the brand is ranked number one, but talking about Europe, there are other cars such as BMW, Audi, Mercedez, and Volvo that provide both luxury and comfort in their cars at the same price as compared to Toyota that only gives you comfort, and durability in cars and not the luxury that for many people is vital. These are some of the reasons that make it clear why Toyota is not popular in Europe but is one of the top-ranked brands in the rest of the world.