Financial Daily from THE HINDU group of publications
Monday, Dec 08, 2003
Financial Daily from THE HINDU group of publications Monday, Dec 08, 2003 |
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Cars Corporate - Outlook Toyota mulls launch at `Maruti 800 price'
K. Giriprakash
Mr Atsushi Toyoshima
Bangalore , Dec. 7 TOYOTA Kirloskar Motor is planning to launch a small car in the 800 cc - 1,600 cc range in another three years. "We could look at an alternative model which is of the same price range as that of Maruti 800, but with added features. But we are still evaluating the possibilities, " the Toyota Kirloskar Motor Managing Director, Mr Atsushi Toyoshima, told Business Line. Mr Toyoshima said it would take another three years to develop the vehicle for India. He said the company was currently studying the market closely. "The volumes are extremely high in this segment and pricing is an important factor for us," Mr Toyoshima said. He said Toyota's associate company, Daihatsu, has several small cars in the 800 cc - 1,600 cc range and the company might pick one of these for India. He said that one of the reasons for Toyota's share of less than five per cent in the Indian market was because it was a late entrant. The company hoped to increase its share to 10 per cent within a few years. Globally,Toyota's market share is around 11 per cent, which the company wants to increase to around 15 per cent by 2010. Mr Toyoshima said the goal would be achieved through a combination of strategies such as capacity addition, launch of new vehicles, internal improvements and increase in dealership network. He said China and India would be one of the fastest growing markets for Toyota. While the capacity in China was around 45,000, it would increase 10-fold by 2010. In India, the capacity was the same though the growth would not be as fast. "The fastest to grow will be China, followed by India and ASEAN countries," Mr Toyoshima said. He said Toyota Kirloskar Auto Parts would start supplying manual transmission to Toyota's plants across the globe. In fact, Toyota Motors' prestigious international multipurpose vehicle, expected to be launched late next year in many Asian countries, will have transmission sourced from Toyota Kirloskar Auto Parts. The multipurpose vehicle, a new experiment undertaken by Toyota to slash cost of manufacturing, will have components sourced from various South-East Asian countries. The project will have a single platform on which new models will be built. For example, two different models will share basic components but their interiors and other features will be customised to local markets, which would not only make it unique but also take care of foreign exchange fluctuations. Considered to be a bold experiment by Toyota, the auto giant hopes to make similar vehicles in future to drive down costs which according to an industry estimate is expected to be around 25 per cent less than what it costs currently. While Thailand is expected to become the sole production base for the project, the components manufacture as well as assembly will be carried out in low-wage countries such as India.
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