The FINANCIAL -- 2008 has been a dramatic year for Toyota. The most important news was that Toyota Motors decided to launch the sale of Hybrid cars in Georgia. These autos are outstanding with their superior fuel economy and ultra-low emissions.

As Irakli Gurchiani, the General Director of Toyota Centre Tbilisi , says, they are extremely important for Toyota because a lot funds were put into their R&D. The most popular model is the Toyota Prius. It consumes 2 litres of fuel, has very low emissions and doesn’t make any noise.

Two models of the Toyota Prius have been getting tested in Georgia over the past 4 months. They are being driven around Georgia to identify the special features that need to be added so that the Prius corresponds to local conditions. The computer inside the auto collects and analyzes the data. The statistics are then sent to Japan on a monthly basis. The total test period is 6 months and as the results show so far, the Prius is adapting well to Georgia.

“The prices for Prius models start from USD 24,000 and go up to USD 34,000. Of course the Prius has to be adapted to local conditions. In Georgia’s case these cars will be able to operate in snow, in damp conditions and mountainous relief. If you buy a Prius in France and then bring it to Georgia after a year it will break down. So at this stage we are doing everything to avoid hazards that may show up in the future,” adds Gurchiani.

The first-generation Prius entered markets in 1997 as the world’s first mass-produced hybrid. The name Prius, “to go before” in Latin, became symbolic of a car that was launched even before environmental awareness had become a mainstream social issue.

From the beginning, Toyota’s full-hybrid system was developed in-house and has become a driving force behind advanced vehicle technology. The company’s exclusive Hybrid Synergy Drive System was introduced in 2004 on the second-generation Prius. Since then, more than 670,000 have been sold in the U.S.

Toyota Centre Tbilisi was going to open 2 new centres in Batumi and Kutaisi by 2010. A new Lexus centre was also going to be opened by the end of 2008. But the economic crisis has impeded the progress of the project.

Gurchiani thinks that if the situation remains the same the construction of Batumi and Kutaisi centres will begin in September.

“We were going to start construction of the Lexus centre in November of 2008, but the crisis has interfered with our expansion plans. The building process of the Lexus centre will probably begin by the end of 2009. If the situation doesn’t worsen we will start building Batumi and Kutaisi centres in September. The Batumi centre will cost USD 5,000,000 while the Kutaisi centre will cost much less, around USD 3,000,000. These two new centres will become key points for selling Toyotas in the western part of Georgia,” Irakli Gurchiani told The FINANCIAL.

After the August war and during the financial crisis dealers started talking about dramatic decreases in sales. In order to cope with the current negative market trends many of them started offering discounts. Toyota is offering discounts too.

“In the first 3 months of autumn sales dropped by 50-70%. If before August we sold 350 cars on average, this figure dropped to 120-150 units after August. Dealerships abroad are facing the same problems. For this reason Toyota Motors’ headquarters decided to offer 10% discounts in December. Discounting worked well because in December the number of autos sold rose to 230 units. In January sales went down again to 130. From February 23 we have had a special 15% discount on offer. However this price cut doesn’t seem to be working that well because since February we’ve sold only 90 units,” states Gurchiani.

Toyota Centre was recently awarded the Golden Brand for the third time. According to Mr. Gurchiani, prices, sales and marketing efforts combined were the main reason for why Toyota was awarded for the third time.

Toyota Caucasus LLC - Toyota Official Distributor for the Caucasus and Central Asia was established on January 16, 2006, with its headquarters located in Tbilisi , Georgia.

Toyota Caucasus represents one of the strategic basic units of the Toyota Company that plays a key part in the process of development of the business of sale of Toyota vehicles and spare parts.

At present, Toyota Caucasus works with three official dealers in Georgia, Azerbaijan and Armenia and in the near future, dealers in Central Asia: Tajikistan, Turkmenistan and Uzbekistan will join as well.

Toyota Centre Tbilisi LTD was established in November 1997. Since then Toyota Centre Tbilisi LTD has carried out the sale and services of Toyota vehicles, spare parts and accessories. On November 1, 1998, the company was officially recognized by Toyota Motor Corporation Japan as the Toyota Authorized Service Station (TASS) in the Caucasus.

The Georgian Toyota Service Station provides three Caucasian countries and 4 middle Asian countries. The founders of the Tbilisi Toyota Service Centre are Irakli Gurchiani and Davit Takidze. Irakli Gurchiani possesses 67% of the company, while Davit Takidze possesses 33%. The company employs 120 persons at the moment. 

2007 was an outstanding year for the Toyota Centre in Georgia. Compared with 2006 your sales went up by 180%.

As Gurchiani claims before August the growth rate was 100%. He says that in the first week of August Toyota Centre managed to sell 47 units. After the war the situation became critical and even now the figures are unpromising.

According to Toyota dealership the best selling models in Georgia are Prado Landcruisers. The prices range from USD 27,000 to USD 30,000. In 2008 Toyota sold 478 Prados.

The most expensive model is the Lexus ELS 460 which used to cost USD 105,000. With a discount you can buy this car for USD 95,000.

As for the cheapest model, it is the Yaris which costs 13,500 at a discounted price.

The recent falling tendencies of oil prices are working well for dealerships. On January 2, 2008, a single trade was made at USD 100, but the price did not go above USD 100 until late February. Oil prices have witnessed a significant fall since July 2008, and were trading around USD 40 a barrel on December 6, 2008. On December 24, 2008, oil prices traded at USD 35 a barrel.

“When prices go down more people buy autos with bigger engines. But as the General Director of Toyota says this fall in price didn’t have a significant effect on sales because the crisis leaves nothing promising for auto sales,”  says the General Director of Toyota Centre.

Toyota Division passenger cars recorded February sales of 58,863 units, down 31.7 percent from the same period last year, but up 6.3 percent over January 2009. Featuring a new engine and refreshed styling, the Camry and Camry Hybrid remained Toyota’s volume leader in February, posting combined monthly sales of 20,634 units. Corolla recorded sales of 18,103 units. Yaris reported sales of 4,779 units for the month. The Prius mid-size gas-electric hybrid posted February sales of 7,232 units.

Toyota is the world’s third-largest automobile manufacturer, selling 5.9 million vehicles each year in over 160 countries and generating USD 108 billion in annual sales. Our company produces a full range of vehicle models, and employs 246,700 people. Toyota is also one of the top ten Fortune Global 500 businesses.

Toyota Division light trucks posted February sales of 37,612 units, down 44.9 percent from February 2008. Light truck sales were led by the RAV4 compact SUV with sales of 8,398 units. The Tacoma mid-size pickup reported sales of 7,874 units for the month. The Tundra full-size pickup reported February sales of 5,726 units. Highlander and Highlander Hybrid posted combined sales of 5,008 units.

Written By Levan Lomtadze