Hi Reader,
It’s 2026, and the electric vehicle giant BYD is making a move that feels eerily familiar to anyone who remembers the Indian auto market of the early 2000s.
BYD has just launched a new sub-brand called “Linghui”. Why? Because they have a problem: their cars are too popular with taxi drivers.
When a car becomes the default choice for an Uber or Didi, it sends a subliminal signal to private buyers: “This is a utility tool, not a lifestyle choice.” It becomes the car you sit in the back of, not the one you dream of driving. BYD knows this. They are seeing their premium image dilute as their models flood the ride-hailing market.
So, they are ring-fencing their fleet sales into a separate brand. If you want a taxi, you buy a Linghui. If you want a personal car, you buy a BYD.
The Masterclass: Toyota killing the Qualis
In December 2004, the Toyota Qualis was not just successful; it was dominant. It had a 35-40% market share and had just clocked its highest-ever monthly sales.
And then, Toyota killed it.
It seemed insane. Why stop selling your bestseller? Because Toyota saw the trap closing. The Qualis was fast becoming the national taxi of India. If Toyota had kept selling it, they would have been branded as “the taxi maker” forever.
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They ruthlessly axed the Qualis to launch the Innova, a more premium, modern vehicle. They forced the market to upgrade. It was a painful, counter-intuitive decision that preserved their premium status for the next two decades.
The Cautionary Tale: The Tata Sumo Trap
Contrast this with Tata Motors in the same era. The Tata Sumo (and later the Indica) was a runaway success. But unlike Toyota, Tata leaned into the fleet market. The Sumo became the face of rural transport, call-center cabs, and rent-a-cars.
The result? The brand got branded “poorly” in the eyes of the aspirational buyer. It took Tata nearly 15 years - and a complete design reinvention with cars like the Nexon and Harrier - to finally brand themselves as a cool & aspirational one.
The Bottom Line
BYD’s move with “Linghui” proves that the rules of brand perception haven’t changed. Sales volume is vanity; brand equity is sanity. Toyota understood that in 2005. Tata learned it the hard way. BYD is deciding not to take the risk at all.
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