Toyota small car launch preparations

Toyota is in the process of getting its dealerships across India in perfect shape for the upcoming launch of its small car, we hear. Not any time soon, though. Hiroshi Nagakawa, MD of Toyota Kirloskar told the Economic Times that the car would be launched in 22 months’ time, and it is halfway through development.

The Toyota small car, which will be available in both sedan and hatchback versions, will debut in India as soon as it debuts globally.It will be powered by a 1.2-litre or a 1.3-litre engine. It is also rumored that the company proposes to unveil the small car in both both petrol and diesel versions.

The car maker which is in the process of doubling its dealership in India from the existing 82 dealers, hopes to lure more buyers for its small car in India during the next two years.

Toyota is not doing exactly well in India right now. Car purchases across the board have slightly picked up in January 2009; and it has to be seen if the trend continues through February. That is what the entire auto industry is hoping for, and one can see their desperation in the large number of tie-ups Indian car manufacturers are entering into with banks.

In 22 months’ time, it is quite likely that the worst of the slowdown would be over and Toyota’s small car would land in the markets globally at a time when car purchase are shooting up. Looks like that’s what they are aiming for anyway.

Mahindra’s Xylo which is comparable to the Toyota Innova in India has proven to be quite popular, and Mahindra has said that Xylo sales are booming, held back only by the lack of availability of easy car loans.

Recently, Toyota launched a CNG version of the Innova MPV to expand its market, and the vehicle has seen an encouraging response in the NCR region. Once the CNG Innova is available at other dealerships in Mumbai, Ahmedabad and Surat, things might get better for the company. But despite all its attempts, they have made it clear they expect sales to remain stagnant in 2009 calendar year.

Another version – a refreshed Innova – incorporating new interior and exterior luxury features was launched recently by Toyota  to battle the Xylo.

Besides, Toyota is also planing to roll out the Camry from its Indian manufacturing facilty. This move is to lessen the burden of import duty on the Toyota Camry. By building the car in India itself, Toyota would pass on benefits to the customer by reducing the price of the Camry by as much as 20-25 per cent, which in rupee terms would be around Rs 5 lakh. The car when imported from Japan would attract a composite import duty of 110 per cent.