The Toyota Veloz is a sister-car of the Perodua Alza. It's a successor to the long serving Avanza nameplate and is manufactured under contract by Perodua Manufacturing Sdn. Bhd. (PMSB) in Rawang, which also makes the Myvi and Aruz. Apart from the Toyota badge and a few Toyota-exclusive features, the Veloz is otherwise identical to the DNGA-B platform 2022 Perodua Alza.

Prices for the Perodua Alza range from RM 62,500 to RM 75,500, while the Toyota Veloz (yet to be launched) is estimated at RM 95,000.

The additional RM 19.5k for the Veloz buys you wireless Apple CarPlay, LED ambient lighting, 17-inch wheels, two-tone exterior paint, and a 30 mm higher ground clearance. That’s quite lot of money for items that any competent accessory shop can fit.

Still, in just 2.5 months since bookings were opened, distributor UMW Toyota Motor has collected 5,200 bookings for the Veloz. Which leads us to the obvious question, what goes inside the minds of people who pay nearly RM 20k more for what is essentially a rebadged and accessorized Perodua Alza?

The reasons motivating their purchase might surprise you, as we recently found out by speaking to some buyers shopping for a Veloz.

To understand the psyche of an actual car buyer (as opposed to poor sods commenting furiously on Facebook), you must leave everything you think you know about cars and listen to what customers are actually saying.

There is no right or wrong, however ridiculous their reasonings may seem, because they are the ones who pay money, and their actions keep car plants and dealerships open. Debates on what is a right model to compare with and other social media comments on the other hand, are worth nothing.

As stupid as it may seem to many ‘car savvy people,’ one buyer cross-shopped between a Honda HR-V and Toyota Veloz. Yes, one is an SUV and the other is an MPV, but put yourself in the shoes of a regular car buyer, does it really matter? Both models are front-wheel drive, tall seating position vehicles.

Remember that customers shop and compare cars based on their needs and budget, not whatever A/B/C/D segments or bodystyles that car guys who don't understand the market say they must follow.

Also read: Crossover vs SUV, what's the difference? The chief behind the 2022 Honda HR-V explains

A customer may say that they are looking for an SUV, but what they are actually saying is they are looking for a tall seating position vehicle, so it’s easy for their ageing backs and hips to get in and out. An SUV-esque MPV, when sold at the right price, is an acceptable alternative.

Said buyer commented that both the HR-V and Veloz are 1.5L cars but the Veloz is cheaper, and the additional third row seats is a bonus. Far from being expensive, the Veloz is to this buyer, an incredibly good deal.

Note that the cheapest 1.5L naturally aspirated Honda HR-V 1.5S starts at RM 114,800

Also read: 2022 Honda HR-V 1.5 S: Corolla Cross fighter undercuts it in price, not value

Income levels play a role too. Paying RM 95k might be too much for many but for this group of buyer, the Veloz is just a cheap, reliable city runabout car that they drive to the wet market or to their exercise / family activity spot.

These buyers want a utility car that can load fish or raw meat inside without worrying about dripping smelly liquid onto the floor mat, and not be bothered if their post-workout sweat stain the Nappa leather of their other cars.

Said customer falls exactly within this group. The Veloz is to replace his 15-year old Avanza, which is used mainly for marketing duties, or to his weekly badminton game, or when he needs to go to places where it’s not so convenient (or safe) to park his much larger Toyota Camry.

Another customer falls more or less within the same demographic, but he is looking for something smaller to replace his ageing Toyota Innova. His kids are all grown and there is little need to keep the cumbersome Innova, but he still appreciates the option to have a third-row seat for rare occasions.

The fact that it’s a Perodua underneath doesn’t bother him. “Nothing wrong with it, Perodua makes great cars. I buy Peroduas for my daughters, but for myself, I prefer to have a Toyota. The old Avanza was also made by Perodua, so what’s the difference?” said the businessman, who also owns a Toyota Hilux.

So in short, value is relative to income levels. For many customers who put money down for a Veloz instead of a Perodua, the RM 19.5k difference doesn’t bother them at all.

Many of them also own another Toyota and have good experience with the brand, so they see little reason to buy a Perodua, because their purchase reasons, how they use their cars, and how they define value, are very different from someone who is buying an Alza.

For an Alza customer, the Perodua is probably their main car. For those shopping for a Veloz, it’s just the cheapest car in their household.

The Toyota Veloz is never going to match the Perodua Alza’s sales volume. That was never the intention. Even the previous, second generation Avanza didn’t sell that many.

The moment the Perodua Alza went on sale 2009, the signs were clear that it was time for Toyota to exit the B-segment MPV market, a segment pioneered by the first generation Toyota Avanza, which was launched in Malaysia in 2004, priced at RM55,967 for the 1.3L manual and RM59,989 for the 1.3L automatic.

The market in 2022 has changed a lot and apart from the tax incentivized quasi-national Perodua Alza, all other MPV models sell in far lower volume.

The current contract manufacturing agreement with Perodua makes perfect sense for UMW Toyota, as it allows them to still offer a complementary product for their loyal customers, without having to deal with complexity of production and supply chain logistics, and all the headache that comes along with producing a car.