Toyota CNG Innova launched

Toyota Kirloskar Motor will launch a CNG version of its Toyota Innova in end-January 2009. The CNG Innova will cost Rs 75,000 – Rs 90,000 extra, including warranty and installation costs.

The company has said that because the CNG kits had to be approved by Toyota Motor Corp., Japan, and there was a difference in the installation procedure, the CNG kits for the Toyota CNG Innova are more expensive.

Toyota Kirloskar’s Deputy Managing Director, Marketing, Sandeep Singh, said, “The CNG Innova should be launched commercially some time in January end. At present, we are conducting test trials of the model.”

Toyota Kirloskar will tie up with Minda Industries for CNG kits for the CNG Toyota Innova.

Toyota also launched its new express maintenance service that promises service to customers in an hour.

With the Toyota CNG Innova, Toyota aims to increase its market share in the commercial segment. The company has said that 15-20 per cent of the demand for the Toyota Innova comes through tour operators and radio taxis. Since the running cost of CNG is one third of petrol, Toyota Kirloskar hopes to increase sales, said Sandeep Singh.

Toyota Kirloskar’s sales in November 2008 dipped by 48.55 per cent compared to the same period in November 2007.  In the April-November 2008 period, sales have been stagnant for the company at 35,533 units. In November 2008, the number of cars produced by Toyota Kirloskar were 2886. Reports have said that Toyota planned to sell 60,000 units in 2008 as compared to the 54181 cars it sold in 2007.

Toyota Kirloskar has also cut production – by 30 per cent in December 2008 – due to decreasing sales. The production targets for January – February 2008 will be decided later depending on the market situation.

However the company will continue with its Rs 3200-crore investment plan in Bangalore.

Our last story on the Innova

The launch of the CNG Innova is also to keep the product attractive, considering the upcoming launch of the competitor Mahindra Xylo.