Toyota plans to roll out more than one small car in India
The Times of India : July 21,2008
NEW DELHI: Toyota will drive in more than one small car in India and each of them will have both petrol and diesel versions. The Japanese car major is pumping in fresh Rs 1400 crore to consolidate its position in one of the world's fastest-growing market.
Despite dominating the global auto industry, Toyota is a laggard in India and had a poor 3.5% market share in 2007-08. Hiroshi Nakagawa, newly-appointed India head of Toyota Kirloskar Motors, told Times of India that the company was working aggressively to change fortunes in India, to make it a big-volume market.
"Against our international position where we dominate, in India we are the challengers," Nakagawa said. Small cars, that account for as much as 75% of car volumes in India, are not there in Toyota Kirloskar's stable at present and the company's first priority is to add them in line-up to get volumes. "We are on course for getting in a new small car by 2010, keeping in mind conditions of the Indian market," Nakagawa said. "We could be looking at more than one model, though the platform would be common," he added.
Sources said the company plans to have at least one model around the entry-level car segment where the majority of volumes exist. Also, its cars would be within the small car definition of government - below 1200-cc in petrol and below 1500cc in diesel - to take advantage of lower excise duty, sources added.
Nakagawa said with technical expertise, Toyota will be able to make pricing competitive for the Indian market. "We are confident of keeping the price well within our target," he said.
The company, that is expanding at its current manufacturing location at Bidadi (near Bangalore in Karnataka) for the small car, is also confident that many of its key and strategic suppliers would relocate there. The company occupies a plot of around 430-acre at Bidadi, though currently it is using only about 100 acres
Asked whether Toyota's subsidiary Daihatsu, that specialises in small cars, could also enter the Indian market, Nakagawa said there was no immediate plan. "I cannot speak anything firmly on this." The company manufactures the multi-utility vehicle 'Innova' and 'Corolla' sedan. It imports the 'Camry' luxury sedan and the 'Prado'. It is all set to bring the next-gen Corolla by September.
Toyota is not the only one that is expanding production to get into the small car segment. Volkswagen, Ford and Honda are also expanding fast to manufacture small cars, while others like Maruti-Suzuki, Hyundai, Tata Motors and Fiat are strengthening existing portfolios.
