The Toyota brand has only been officially available here for less than a month, but it is already making waves in the local market.

In the 11 days remaining in October after the brand was launched on Oct. 20, 529 Toyota vehicles were sold, making the brand the country`s sixth bestselling import.

Of the 529, the mid-sized sedan Camry took up the largest with 289 units sold last month, followed by the compact sport utility vehicle RAV4. Of the two hybrid electric vehicles, Camry hybrid and Prius, 38 units and 128 units were sold during the period respectively.

Although the Toyota brand is showing promise, Toyota Motor Korea says that they are not looking to expand their presence here beyond the imported market within the foreseeable future.

At the Toyota brand`s local launch ceremony, Toyota vice president Yukitoshi Funo said that the company does not intend to compete with local carmakers.



"In the Korean market about 95 percent of vehicles are Korean cars, so the imported car market is very small and I think the market is unlikely to expand by very much in the near future," Funo said. He added that instead of expanding volume, the company will be working to establish a special bond with its customers.

Such claims were echoed by Toyota Korea president Chigira Taizo who said that the company is not considering expanding the Toyota product lineup for the local market in the near future.

The company`s relatively modest sales target does seem to back up the claims.

"The company`s monthly sales target is 700 units for next year, and we plan to regulate the flow of vehicles to maintain sales figures close to the 700-unit target," a Toyota Korea official said.

However, even Hyundai Motor Co. that reigns supreme in the local market seems to have been rattled by the launch of the Toyota brand.

At the time of Toyota`s launch Hyundai officials said that the company is closely watching the developments, but that it had not drawn up any specific measures in response. However, the company launched an eight-week comparative test driving event that allows consumers to compare its Sonata and Tucson ix with the Toyota Camry and the RAV4.

"Of course we are not disregarding completely Toyota`s impact on the local market, but we are not overly sensitive about the brand either," a Hyundai official said. She also said that the report of the company`s marketing division monitoring Toyota`s local sales on a daily basis is false.

"The comparative test driving event is aimed at showing that we are confident about the quality of our vehicles."

Although the Toyota vehicles are priced in ranges similar to that of Hyundai vehicles, leading some to interpret Toyota`s pricing scheme as being aimed at targeting domestic models, industry officials say that direct competition between Toyota and Hyundai in the local market is unlikely.

Hyundai Sonata starts at 19.6 million won ($16,900) and goes up to 28.2 million won. The larger Grandeur ranges from 26.43 million won to 39.38 million won. The Tucson ix is priced between 18.7 million and 28.8 million won and the larger Santa Fe, excluding the liquefied petroleum gas-powered version, ranges from 25.5 million won to 38.75 million won. In comparison, the Camry`s price of 34.9 million won places it right between Hyundai`s two sedans, while the RAV4`s range of 32.1 million and 34.9 million won places it between the Tucson ix and the Santa Fe.

"The borders are becoming less and less distinct, but imported and domestic vehicle markets remain quite separate," an official with a domestic carmaker said. He added that even though the price gap between the two has narrowed, potential buyers tend to separate domestic and imported brands.

"When the Nissan brand was launched, some said that it could affect Renault Samsung`s sales, whose vehicles share much in common with that of Nissan, but that has not happened. I think the Toyota case will be the same," he said.

"Of course, as the range of models available widens, some of the demand that would have been met by other carmakers will go to Toyota but for local carmakers that have much larger volume here, the effect will be small." (cheesuk@heraldm.com)







By Choi He-suk