|Emerging car marts like India, Brasil, China and Russia will soon see an invasion of low-cost cars from Japan. Auto major Toyota Motor is the company which is planning a low-cost small car, specifically for the emerging markets including India.
The low cost car is expected to be launched by 2010. Reports from Japan's automotive industry said that the car would have a 1,000 cc petrol engine and would cost around $6,500. This would mean that it would be just under below Rs 3 lakh in India and would compete with the Maruti Alto, Hyundai Santro and the Tata Indica Xeta.
It has been a while since Toyota had been planning a small car for markets like India. With the revenues now more from the small car segment Toyota too doesn't want to be left behind. The Toyota vehicles on Indian roads are currently limited to the MPV and premium sedan segments.
Many a newspaper in Japan has reported that Toyota is also looking at an alliance with Ford Motor. The alliance between the two would be limited to development of technology and is unlikely to involve any financial investments.
The global trend is that auto manufacturers are seeking closer ties to bring down costs and stop the decline in margins. Ford is rumoured to be working towards an alliance with Nissan-Renault.
Labels: Auto Industry, Toyota