The Hindu Business Line : Toyota’s small car may be high speed, not low cost

With the definition of a compact car in terms of price ranging from $3,000 for companies such as Tata Motors and Bajaj-Renault and around $9,000 for Honda, the world’s largest auto maker is still working on the pricing details.

However, with regard to its future direction of its vehicles, Mr Akira Okabe, Senior Managing Director and Member of the Board, Toyota Motor Corporation, told Business Line that, “a popular car or a standard model is one definition. We would like to go a step or two ahead. At the moment, there are not many vehicles which are high speed and safe to drive on the highways. We are thinking in this direction and of course there will be a price that will be involved to that extent.”

He declined to give any specific details on the price, saying, “This would be the cheapest car from Toyota and the mainstay of Indian motorisation.”

Toyota is also exploring the possibility of setting up an engine production facility in a year or two as it gets ready to launch a range of cars in the country.

“In Japanese we say, give birth to a small child and then raise it to become big. So for us it may not be possible to commit a huge investment at one time. But we look at the market conditions and once the sales stabilise, we will pursue such a possibility in a year or two years’ time,” Mr Okabe said.

According to the Toyota Kirloskar Motor Managing Director, Mr Hiroshi Nakagawa, the company was doubling its dealership network from 77 points to expand its sales. “The market is of two million vehicles and it will double. We believe it would be a good opportunity to expand very soon, besides asking our existing dealers if they are willing to expand.”