Should you consider the Honda City Hatchback over the Toyota Yaris

When you look at the below RM99,999 car-buying market in Malaysia, the choices seem disappointing as you have less than a dozen possibilities. Moreover, the two national car brands, Proton and Perodua, prevent many car manufacturers from venturing into this price segment. It is less profitable and seems more like a struggle to get the booking from the cash-strapped car buyer.

For a Malaysian hatchback car buyer on a budget, the Perodua Myvi takes priority as it's priced from RM45,700 to RM58,800. Then there is the Proton Iriz which is priced from RM40,800 to RM54,800.

So, when the Toyota Yaris was launched in early 2019, priced from RM70,888 to RM83,888, it stirred the emotions of Myvi buyers as they were trying to see how they could stretch their monthly payments from RM58k to RM70k? Not easy for lower middle-class wage earners in a big city with high living costs.

At the time, the Honda Jazz was recently face-lifted and selling from RM80k. It had been the 'upgrade' car for many Proton and Perodua owners and had relatively good sales.

With the arrival of the Yaris in 2019, Jazz sales started slowing down, and rumors of an all-new Jazz kept some current Jazz owners ready to trade up. The all-new 2020 Jazz was unveiled at the Tokyo Motor Show and received rave reviews and comments on its looks, features and drivetrain. Confidence was very high on its arrival in Malaysia. Then, for some reason, the Jazz was retired from ASEAN nations, and a replacement arrived in 2021, the City hatchback.

Yes, the City sedan had been a very popular model in Malaysia and ASEAN. Still, Honda product planners had a hatchback version now, and this was released in Thailand first with huge success and then in Malaysia in December 2021. Priced from RM75,670 and with higher features and cabin space over the last Honda Jazz, Malaysians were initially slow to make a booking. Sales of the aging Yaris were also slow. Malaysians were confused. To buy or not?

Covid-19 has rocked the market. Then as the months progressed, the City hatchback demand started rising; then, in April 2020, the City hatchback with Honda Sensing arrived. It was RM91k, and buyers walked into showrooms to buy a unit. The Yaris was getting less attention. UMW Toyota offered a good financing scheme; still, it was starting to show its age, and Toyota needed to launch its latest Yaris.

So, the City hatchback leads the Yaris in sales for a few reasons right now. To start, it is a brand new car. New design, new features, new outlook, and a long list of added features over the Yaris. With the City V-Sensing, you get adaptive cruise control, collision mitigation, forward collision warning, lane keep assist system, road departure mitigation, lane departure warning and auto high beam. Yes, it is more expensive, but it also has a larger cabin and a more upscale cabin look and feels in line with all new Honda models.

So, is UMW Toyota keeping quiet? They are now offering a financing scheme with Toyota Capital with a monthly payment of RM700.00. It is so tempting that it is working more towards getting Perodua Myvi buyers to look at the Yaris ownership and leaving Honda City salespeople to enjoy the rising demand.

Also Read: Honda City Hatchback or new Perodua Myvi to buy tomorrow?