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Toyota launches new LCV strategy

Toyota Professional will debut in specialist LCV centres within the current network with new signage and van display areas along with dedicated staff and workshop stations.
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8 July 2019

TOYOTA dealers will be adding a new brand to their showrooms from next year as the Japanese brand rolls out a new light commercial vehicle strategy.

Toyota Professional will debut in specialist LCV centres within the current network with new signage and van display areas along with dedicated staff and workshop stations.

While Toyota Motor Europe rolls out the programme across the region, the UK is already ahead of the game with 17 LCV specialists among its 63 Business Centres.

These Centres specialise in working with local businesses and fleets.

Toyota GB has 179 UK dealers and commercial vehicle chief Gareth Matthews is looking to boost the number of LCV specialists.

He said: “We have been ahead of the game largely because the UK is a more mature market in terms of fleet compared with the rest of Europe

“We are also the first national sales operation to introduce an approved converter programme and this is a good business opportunity.

“It is extremely rare for any van to go out on the road without any conversion, even if it’s only ply panelling.”

Where will dealers find the space to showcase vans? Matthews said: “We do not expect them to necessarily provide showroom space but dealers can make better use of their forecourts.

“Used car sales are increasingly made online so there is not the requirement to use all the outside space for second-hand cars, some of this can be given over to display vans.”

Toyota’s LCV range will also be expanded next year with the launch of the Proace City, giving the brand a presence in the compact van sector.

Andrea Carlucci, Director of Product and Marketing at Toyota Motor Europe said that the brand was now ready to commit fully to the market by introducing van business centres into selected dealers, initially in major cities.

He said: “LCV is a key pillar of our product and marketing strategy along with alternative powertrains.

“Our LCV offering has been dominated historically by our pick-ups but since the launch of Proace, sales have risen across Europe from 21,000 in 2017 to 30,000 this year and we are projecting growth to 32,000 in 2020.”

Target for growth is the small and medium size business sector along with sole traders.

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New Proace City

 

Carlucci said the strategy is aimed at building sustainable fleet sales, increasing the resilience of the dealer network and realising higher levels of value chain earnings.

The City, which goes on sale from February next year, is seen as key because of the growth in city delivery vans and e-commerce.

Compact delivery vans account for more than 800,000 sales in Europe

Umberto Mazzone, Manager, LVC Marketing, said that Proace City will be the centre of gravity for the Toyota Professional strategy.

“It will be a brand booster and a fleet accelerator and are network will be able to provide a one-stop shop for fleet.”

He said that first there is a requirement to create a credible LCV umbrella brand and Toyota Professional will have its own grey visual identity reflecting quality and a “metallic” look to reflect the image of a panel van.

Positioning will mirror that of Toyota cars – quality, durability and reliability said Mazzone.

He added that Toyota Professional will have a dedicated area on the Toyota website.

Rodrigo Garcia, Senior Manager for Fleet, said the LCV centres will be established in dealerships, although not as a stand alone building.

Dealers will be asked to have a specific space to show and sell vans and they will have to display new signage.

They will also be expected to have a dedicated LVC sales person and workshop stations, and carry up to three and a half months of stock.

He added: “Unlike car buyers, people need their vans straight away. Dealers will also have to carry out express one hour service and provide courtesy vans.”

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Chris Wright

Chris Wright

Chris Wright has been covering the automotive industry nationally and internationally for 30 years. Following spells with consumer titles he became News Editor of Automotive Management (AM), Editor of Automotive International, International Editor for Detroit-based Automotive News, and Editor of Dealer Update. He has also co-authored several FT Management Reports and contributes regularly to Justauto.com

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