Toyota hit the nail on the head with the all-new CH-R subcompact crossover last year — a flashy, sporty and nimble new vehicle that is aimed squarely at millennial sensibilities.
And it’s a good thing: In its second year on the market, CH-R remains a top leader for the brand in terms of sales gains over the year before, at a time when Toyota like other automakers is struggling to find strong niches in an overall flat market.
What’s more, CH-R holds down a great position for Toyota in a segment that is expected to grow even further as young car buyers increasingly reject traditional sedans, yet often can’t quite afford a larger SUV.
“CH-R is in the fastest-growing segment in the U.S. market, and there is lots of competition for the younger customer,” Cynthia Tenhouse, vice president of Toyota vehicle and marketing communications, told me. The mid-size Toyota RAV4 “is for Generation X or an older millennial.”
Indeed, CH-R offers the look, feel and performance that appeals to younger drivers more directly than any new Toyota in a long while. The brand stayed away from that market for a few years, chasing it instead with the Scion sub-brand that proved to be a flash in the pan. In fact, CH-R originally was supposed to be a new Scion model, so it demonstrates sharply angled styling that is rather extravagant for a Toyota. So is its sporty handling.
Just as well. Even in its base form, CH-R comes equipped with automatic headlights, dual-zone automatic climate control and traffic-adapting cruise control, all standard, as Toyota does a better job than most automakers of pressing essential automated-driving technology even into entry-level vehicles as standard equipment.
Also on the tech side, Toyota has loaded the 2019 CH-R with infotainment features that most young drivers consider sine qua non these days, including Apple CarPlay as standard for 2019, a larger 8-inch touch screen, and available navigation and satellite radio.
“Especially in urban environments and with younger millennials, tech is really important,” Tenhouse said. “CH-R is one of the only vehicles in the segment that comes with standard safety features that we’ve got.”
Those features include pedestrian avoidance, blind-spot monitoring and a backup camera. “Pedestrian safety is a general point of emphasis for us,” Tenhouse said. And it’s a huge thing in a city, where pedestrians can come from all over.”
Powered by a 2.0-liter, 144-horsepower engine, CH-R is a little sluggish in accelerating and getting up to speed on the highway. But handling is crisp in the front-wheel-drive vehicle and steering responsive. The fact that it’s a crossover means CH-R makes pretty good use of its below-average cargo volume, though rear-seat space is limited.
Prices beginning at under $21,000 make CH-R about average in the subcompacat SUV class, and it can trim out at up to $26,000. All-wheel drive isn’t an option.
Because of its millennial target for CH-R, Toyota’s marketing for the crossover is focused on digital channels. “It’s not a mass-awareness campaign,” Tenhouse explained. “It’s much more targeted. We’re targeted toward who it will appeal to and we do it digitally. We want to find these customers right where they are and give them the right message at the moment. And because so many of them are cord-cutters, we’re heavily digital.”
