Toyota plans to launch small cars

Toyota plans to launch small cars
United News of India

New Delhi, Jan 14: Toyota Kirloskar Motor Limited (TKML) is planning to introduce a small car and a top-end luxury model in the Indian market.“We are studying the option as there is a good market in the volume segment here and we need to address it. But no time frame, model and price tag have been decided as yet,” TKML managing director Sachio Yamazaki told newspersons here last night.

Yamazaki said the existing model line-up from Toyota stables is being considered for the small car and a feasibility study has been initiated to finalise the model.

“Besides the small car, we have an intention to foray into the luxury passenger car market as well. It is likely to be imported as completely built units (CBUs), depending on the import tariff laid down in the forthcoming auto policy,” he said.The company which launched its maiden offering a multi-purpose vehicle (MPV) ‘qualis’ last year with a base model price tag of over Rs. 4.5 lakh, has captured a market share of 35 per cent in the MPV segment in the year 2000. It sold 21,785 vehicles and exceeded the yearly target of 20,000 units.

Despite a slowdown in the automobile industry, Toyota sold 2,452 vehicles in December 2000 itself, compared to 1,820 units in the previous months.Yamazaki said the TKML is expecting to sell 35,000 units in 2001 to achieve 46 per cent market share in the MPV segment.

The company has also developed an exclusive dealer network comprising 27 dealers all over India and plans to increase the number to 45 by the end of 2001, he said, adding, “we are moving step by step on the growth track.”

“We have exported two units of Qualis to Nepal for testing. Though there are no immediate plans for large scale export of Qualis from India in view of the growing domestic demand,” Yamazaki said.

He said, “we are looking at achieving total breakeven on investments in 2002.” The total investment of the company stands at Rs 700 crore.

TKML is a joint venture between Toyota Motor Company and Kirloskar Systems with the former having an 88.86 per cent stake while the Indian partner owns 11.14 per cent.