Toyota considering independent venture for the compact car in India
Hinting strong ideas about launching a small car in the Indian market, Toyota has expressed that they are looking into starting an independent venture for launching such a vehicle in India. The company is studying multiple options for entering the burgeoning compact car market in India. The most popular one is setting up a completely new venture with its subsidiary Daihatsu.
The company just launched a renovated version of their highly regarded Toyota Corolla model here and now plans to invest $89 million for entering the compact car market to take on heavyweights like Maruti and Hyundai offering products like Suzuki Swift and Getz in the market. A new source said: â€œThe final decision on the entry route, the particular model slated for India and other finer details will be taken over the next 2-3 months. The new compact car will be commercially available in India only by 2007.â€
However, the companyâ€™s official word is that nothing is finalized yet and they are still considering the various options in front of them. Market experts believe that if such a model is indeed being considering, the highest possibility is of a 1-litre-class car based on the Passo model that Toyota and Daihatsu co-developed. And the manufacturing plant for such a vehicle is expected to house a capacity to produce 100,000 small cars a year.
Toyota is already constructing a new plant next to the existing facility in Bangalore, where it produces the crossover utility vehicle Innova, and premium sedan Corolla. The company is also considering the use of auto parts from Indian suppliers in its factories overseas. Toyota Kirlokar Motor joint MD KK Swamy had this to say: â€œWe are seriously studying the possibility of exporting components from India as many of our suppliers are very competentâ€.