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Toyota Kirloskar Motor is likely to introduce a new hatchback in the Indian market, nearly 18 months after phasing out its made-for-India hatchback, Etios Liva.
The hatchback is expected to be positioned in the premium category and is expected to be launched towards the end of the calendar year. Sources close to the car maker told BusinessLine that with the workers’ strike coming to an end, Toyota is looking to revisit all its plans for the Indian market and push ahead with new launches.
Both Etios sedan and Etios Liva were phased out ahead of the introduction of BS-VI norms. Both the cars were the mainstay of ride-hailing companies such as Ola and Uber. Toyota has assured both these companies that servicing of these cars and their components will continue to be made available for the existing customers.
“We would like to refrain from commenting on these issues as it pertains to our future product plans,” a Toyota Kirloskar Motor spokesperson said.
Etios, Liva models
Both the Etios and Liva were made-for-India models launched in 2000 and were manufactured at Toyota’s second plant. Now that their production has been stopped, it will free up the plant’s capacity to manufacture new models. The first plant with a capacity of 1 lakh cars produces the Innova and Fortuner models. The second plant has a capacity to produce 2.1 lakh cars. The company expects to take advantage of the current demand for new models in the market.
According to analysts at Motilal Oswal Financial Services, inventory is much lower than normal for passenger vehicles due to strong demand. “Our interaction with leading industry channel partners reflects optimism with OEMs maintaining inventory of 3045 days at the dealers’ end,” the note said.
Workers’ strike
Toyota’s plants at Bidadi, about 40 km from Bengaluru witnessed its longest strike since its inception in 1999, following a strike by its workers. It was recently resolved following negotiations among the State government labour officials, workers’ union and the management of the car maker.
Toyota Kirloskar, a joint venture between Toyota Motor Corporation and the Kirloskars, is understood to be exploring newer markets in the country to increase its sales. It plans to open multiple dealerships across tier-III and rural areas to sell its Urban Cruiser and Glanza models. This could pave the way to launch more models to cater to the increasing demand from such markets.
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