Toyota’s global small car may drive out of India

Co Targets 200,000 Units In India By 2010

THE small car brandwagon seems to be in top gear. Japanese car major Toyota is reportedly working on a global small car platform which will also be manufactured in India and will likely be built with a strong India focus. The mini car will be part of Toyota’s stated target of hitting 10% marketshare in India by 2010 and will likely be cranked out of a brand new plant. When contacted Toyota Kirloskar Motor deputy MD KK Swamy refused to comment. Sources in the company however, said that Toyota is seriously studying options that would help the company hit around 200,000 units in India by 2010, and the current concerns are cost-competitiveness, market and customer preferences. Auto component sources believe that Toyota will most likely kick off its global car project with India. Said a senior official with a top Toyota vendor: “We have been made to understand that India would be the first country where Toyota’s small car would be manufactured and Toyota seems quite clear about it.” Other vendor sources add that both India and Brazil will be manufacturing hubs. According to sources in the supplier industry, the company — which has already announced that its 10% marketshare target won’t be possible without a small car — will also take a call on its second plant shortly. Its current plant is at Bidadi in Karnataka where it also has land for another facility. Toyota officials have, at various stages, indicated that the company is studying options including a small car and a small sedan below the Corolla. At present, its stable includes the Innova minivan, the Corolla and Camry sedan and the Landcruiser Prado SUV. International media has been reporting Toyota’s intention to develop a 1-litre engine global car by 2010 which will cost around $7,000-8,000 (Rs 3-3.5 lakh). While it is likely to be developed alongside Daihatsu, it may be badged differently in different markets. Among the markets where the global car will have a big presence are central and south America, central and east Europe and, of course, India. The engine options could include gasoline, diesel and hybrid. The global car is crucial for Toyota which is looking to improve its sales in the BRIC markets. The small car — which will likely be productionised either out of a hub in India or Brazil — may be badged either Daihatsu or Toyota. Most component sources agree that Toyota will bring in a new platform to target India’s booming compact car market. While a vendor conference is expected to be held on the April 16, vendor sources expect a call on the global small car very shortly. The Daihatsu-Toyota combine has successfully rolled out a whole range of hot hatches like the Avanza and Xenia or the Passo/Boon in the international market. The latter was, reportedly, once being considered for the Indian market before the Daihatsu team red-signalled it on cost terms two years ago. That’s also when Toyota’s second plant plans in India slipped into first gear.

Courtesy: EconomicTimes