And the recently concluded Tokyo Motor show, the company told the Indian media that it has plans to launch a new MPV in the Indian market which will be priced below the Toyota Innova.

2009 Toyota Avanza: Possible India launch?
It is believed that the new MPV will be unveiled before the public by Toyota Kirloskar during the upcoming Indian Auto Expo 2010 in January. The new MPV will possibly be the Toyota Avanza, currently being sold as a people-mover in some markets like Thailand. In those markets, Toyota Avanza is positioned below the Toyota Innova.
The new MPV Avanza will be positioned below the current bestseller from the company, the Toyota Innova to target a more price sensitive market. This means that the price of the new MPV we’d be between base Rs. 6 lakhs and Rs 8 lakhs. Currently, the Toyota Innova is priced at Rs lakh for the base version.

Pic: Toyota Avanza side view
In the Indian market, the Toyota Manza will take on the Mahindra Xylo and the Chevrolet Tavera which are currently being seen as value for money alternatives to the Toyota Innova.
It is believed that Tata Motors will also launch its much anticipated MPV, the Tata Xover, at the 2010 Auto Expo. Looks like the Indian MPV market is finally going to see some serious competition again. If the new MPV is the Avanza, it will mean that finally have a vehicle to compete against the Mahindra Xylo and the Chevrolet Tavera in the low-end people mover market. The Tata Xover will, on the other hand, we positioned against the Toyota Innova.

Toyota Avanza - another photo
There is a little hiccup though. The Toyota Avanza is sold abroad with an 1500 CC petrol engine. A petrol engine on an MPV is not a proposition that will likely work in the Indian automobile market. So, will Toyota introduce the Avanza in India with the petrol engine? We do not think that is likely. Most probably, Toyota will plonk in a diesel engine into the Avanza when it comes to India. The Toyota Avanza is expected to be a five seater, say some, while the current, 2009 version of the Avanza is a seven-seater.
Even though the MPV in the unveiled to the Indian market at the 2010 Auto Expo, the actual launch of the MPV is likely to be towards the middle or the end of 2010.

Toyota Avanza MPV may be unveiled at Auto Expo 2010
As far as design goes, we think the Avanza looks like a cross between the Toyota Innova and the Mahindra Xylo. Not that it matters much, remember how the Toyota Qualis was adopted so quickly by the Indian market. The same is also true for the Mahindra Xylo- it would not win any design awards, but is still a pretty good sales success.
Toyota Kirloskar has not had a single flop in the Indian market since it entered the Indian market with the Toyota Qualis MPV more than a decade back.
Business Standard newspaper reported that Toyota has been evaluating the Toyota Avensis Verso MPV in India- so there you have another rumor.
Auto Enthusiast said on Saturday, November 7, 2009, 21:36
Give us an option of a diesel automatic im sure it will be an excelent option
honeey said on Monday, November 9, 2009, 22:13
avanza looks like a awesome car,i just can wait to see it in indian roads.n will preferebly buy it after 3 months of its launch,the only thing to watch is which diesal engine toyaota fit into avanza,according to me there shud be two engine options,one for power n performance n 2nd one for its superior mileage.if it does has milage of 20km/p/l or bit more(coz of its compact size) nobody can stop it beating all other cars in its class n becoming a smashing hit not on indian roads.thanx toyota for providing such great cars n come on keep it up.heartily thanx for such fabulous cars n congrats for your your well deserved sucsess.