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C.R. Sukumar

Hyderabad , March 7

CLOSE on the heels of withdrawing its multi-utility vehicle Qualis from the Indian market and replacing it with the country's first three-row seating passenger vehicle Innova, Japan's Toyota Motor Corp plans to come up with a compact car for the Indian market.

"This is part of our corporate strategy to corner at least 10 per cent share of the Indian passenger vehicle market by 2010 from the existing level of 5 per cent," the Toyota Kirloskar Motor Marketing Director, Mr T. Ino, said.

On the sidelines of the launch of Innova in Andhra Pradesh on Sunday night, Mr Ino told Business Line that the company was studying potential growth segments in the Indian passenger vehicle market to chalk out a strategy for consolidating its market share.

This requires the company to go in for volume products, including a compact car. The company has embarked upon an expansion programme to take production capacity to 60,000 units per annum from 45,000 units.

However, Mr Ino declined to elaborate on the proposed compact car and said the details were still being worked out. "All I can say is that it will be smaller than Corolla."

Stating that Toyota would not offer cheaper cars for the cost-conscious Indian customers, he said the company would, however, continue to strive tooffer value for money and products that are affordable to many. The company can announce the timeframe for the launch of the small car in the Indian market only after completing the ongoing feasibility, he said.

Mr Ino said that Toyota is expanding its presence in India through various initiatives that include introducing a range of vehicles from compact cars to super luxury sedans.

Toyota has firmed up plans to expand its network in the country to nearly 150 from 60 dealers now.

Terming that India is one of the fastest growing car markets across the globe, he said, "That's why the Indian market is key for Toyota's global consolidation strategy."

Toyota has invested about Rs 600 crore on the Innova project in India, taking its total investment in the country to around Rs 1,500 crore.

Stating that Innova has received overwhelming response from across the country since its launch on February 24, Mr Ino said the company expects to sell 45,000 units in India during the first year of sales.

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