Could Cheap Cars Displace the Dominance of the Avanza and Xenia?

The dominance of low multipurpose vehicles (LMPVs) is predicted to be overtaken by the emergence of low cost green cars (LCGCs). The dominance of the Toyota Avanza and Daihatsu Xenia as leading LMPV sellers in recent years is beginning to wane. The emergence of various LCGC variants led to a surge in sales in 2016, almost surpassing LMPVs. Indeed, with seven-seater variants like the Toyota Calya and Daihatsu Sigra, LCGCs have been able to capture market share from LMPVs. Passenger capacity is a significant factor for consumers when buying a car.

According to Gaikindo data, the sales trend for LCGCs shows significant growth. Last year, total LCGC sales reached 235,171 units, a rise of approximately 42.15 percent compared to 2015's figure of 165,434 units. This contrasts sharply with the performance of LMPVs, which in 2016 only sold 249,931 units, a decrease of 1.88 percent compared to the previous year's 254,639 units.

The entry of LCGCs has become serious competition for vehicles in other segments. A victim of this new product type is the city car, such as the Honda Jazz and Toyota Yaris, which have been steadily losing ground since the emergence of LCGCs. It is possible that LMPVs will be the next victims of LCGCs.