Toyota small car in petrol, diesel variants soon

Toyota Kirloskar Motors, a joint venture between the world’s largest  Auto manufacturers Toyota and Kirloskar group, is building a small car which is expected to be launched by December 2010.

Update: Fortuner launched! Rs 18.5 lakhs, diesel, 171 PS. Click here for more.

The Toyota small car will be available in both petrol and diesel versions and will be powered with a 1.2 and 1.3-liter engine. The car will be launched in both hatchback and sedan models.

“The new strategic small-vehicle project has reached half-way in its development. We will launch it in 22 months,” said TKM’s managing  director, Hiroshi Nagakawa. This is the only major global project undertaken by Toyota in the midst of the economic breakdown.

“The market condition for Toyota India is tough. Our sales have dropped by 50% and we had to cut production by 30% due to an inventory pile up. But we have managed the inventory problem from November to January and are now producing 3000 vehicles per month. The production volume will be increased step by step in February, March and April,” Mr. Nagakawa said.

Although the planned Toyota small car will be developed primarily for the Indian market, it will also be exported to other countries depending on the success of the Toyota small car.

Toyota plans to build a plant near Bangalore at a cost of $63 million. “The first phase of the second plant will produce 70,000 vehicles annually, reaching a final production capacity of 200,000 vehicles per annum.

(Some time back, we had another article about the proposed Toyota small car for India.)

At this moment, this plant will be used for the small car project. But it is a flexible plant where we can produce five types of vehicles,” said Mr. Nagakawa.

About the planned CNG variant of the Toyota Innova, Mr. Nagakawa said that the variant is in the testing stage and will be launched as soon as possible.

The last offering from Toyota Kirloskar Motors was the four-door Toyota Altis in 2008.

By 2011, Toyota Kirloskar also plans to to double its dealerships in India from the existing 82 dealers.

Toyota also plans to bring SUVs like the Fortuner and the diesel variant of the Landcruiser Prado to India, in 2009.