[Car Talk Forest] Not Typical of Toyota, But Only Toyota Could Make This Car: Why It Was Released in Korea

World's No.1 Automaker Toyota Struggles in Korea
Launches GR86 as Part of Brand Strategy Overhaul
Only Rear-Wheel Drive, Manual Entry-Level Sports Car in Korea
"A Mass Brand with a Unique Approach Possible"

Toyota GR86 waiting at Inje Speedium circuit

[Asia Economy Reporter Choi Dae-yeol] The principle that "making a lot means making well" applies to any manufacturing industry. Producing in large quantities allows not only the accumulation of experience and know-how but also reduces unit costs such as raw materials and labor, thereby lowering the production cost per unit. This is the benefit of economies of scale. This is the source of Toyota's competitiveness.

Toyota, considered a latecomer among European and American makers as well as domestically, rose to the throne with its unique production method refined over about 20 years in the mid to late 20th century. Since the 2000s, it has been the only maker to consistently rank in the global top three in terms of annual vehicle production and sales. Considering the large-scale recall incidents and production disruptions caused by major earthquakes during this period, this achievement was not easy.

Among the expressions used to describe Japan's three major automakers (Toyota, Nissan, Honda), the term "Sales Toyota" referring to Toyota carried a somewhat sarcastic tone. However, looking at it from another angle, it is undeniable that Toyota understands better than anyone what is most important to be recognized by consumers in the market.

A Toyota car dealership in Lakewood, Colorado, USA

Toyota's performance in Korea was not bad either. In Korea, the high-end brand Lexus started sales first in 2001 and in 2006 surpassed BMW to become the top imported brand in sales. The Toyota brand, which entered the market later, also quickly established its position. In 2010, its second year in the domestic market, Toyota's market share in the imported car segment reached 7.3%. Despite the clear division between domestic and imported car demand in Korea and the preference for mid-to-large European models among imported cars, Toyota posted respectable results.

The damage caused by the boycott of Japanese products that erupted in 2019 is still ongoing even after about three years. In fact, the market share has further declined. In 2020 and last year, Toyota and Lexus brands maintained a 5% share in the imported car market, but this year they have failed to maintain even that. The relatively lagging electrification strategy also seems to be holding them back.

Akio Toyoda, President of Toyota Motor Corporation, is photographed in front of the GR GT3 concept car at the Tokyo Auto Salon 2022 held in January this year.

Toyota, which had been shrinking, stretched out and launched its first card: the entry-level sports car, the GR86. It is the only rear-wheel-drive manual sports car model available domestically. It cleverly targeted the fact that Hyundai's Avante N (high-performance line) is front-wheel drive and that sports cars from other foreign brands are less accessible due to their high prices.

At a recent GR86 test drive event, racing driver-turned-instructor Kwon Bom-i described it as "comparable to middle school." If regular mass-produced cars are elementary school and high-end, high-performance sports cars are high school, this means the GR86 can appropriately serve as a bridge between the two. Kwon Bom-i said, "The solid fastening feeling is impressive," and added, "It's a fun car that reminds me of when I first learned to drive."

Toyota GR86 driving on the slalom course at Inje Speedium

Toyota GR86 interior. Only manual transmission models are imported into the domestic market. The main buttons on the center fascia are large physical buttons designed for easy operation even with gloved hands. The parking brake handle extends forward up to the thigh area for convenient use at any time while driving.

Although it gained word-of-mouth among enthusiasts, it was not brought in with the primary goal of selling a large volume. The pre-orders received over the past two months total about 120, and the volume secured by Toyota Korea Motors this year is about 100 units. A Toyota Korea official said, "Globally, Toyota is known as a popular brand, but in Korea, rather than simply selling a lot, we wanted to convey the Toyota brand differently, like 'It was good to drive this kind of car' or 'There is such a car too.'"

Just as athletes raise their abilities to the extreme in competitions, automakers confirm their limits and refine their technology through motorsports. The GR86 has been able to maintain its lineage thanks to the interest of the Toyota owner family, who have long emphasized the importance of motorsports. In other words, although the model is somewhat distant from the public perception of the Toyota brand, it is certainly a model that would have been difficult to develop or launch if it were any brand other than Toyota.