Toyota plans to grab 10% of the Indian market share by 2015
Toyota has further plans to grab a 10 per cent of the Indian market share by 2015, which is estimated to grow to 3.5 million vehicles per year by then. Toyota's growth key lies is in the Indian market in its upcoming EFC (Economical Family Car) platform which will spawn hatchback and saloon body styles. Under consideration is the Toyota Avanza MPV, which sits a segment below the popular Toyota Innova.
The compact MPV category in India is virtually non-existent and is served only by the six-seater Maruti Versa van which barely sells. The Toyota Avanza is also a seven-seater on a rear-wheel-drive platform but unlike the Toyota Innova, the Toyota Avanza has a monocoque construction. The present Toyota Avanza is only available with 1.3 and 1.5-litre petrol engines which just wouldn't fly in India. Toyota which will be considering the 1.4 turbo-diesel for the Toyota Avanza might just wait for the next-G Toyota Avanza which is being developed with a diesel engine option but that is still some years away.
The Toyota Avanza will appeal to those people who find the Innova's ship-like dimensions too much. Toyota who wishes to meet a target price of Rs 6-7 lakh is considering heavy localisation to bring costs down. If we look at the matter strategically, Toyota sees the Toyota Avanza as the right vehicle to plug the huge gap that will exist between its small car line-up and the big Toyota Innova.
The Economical Family Car is the cheapest car in Toyota's portfolio and is positioned in a segment of the market the Japanese giant has never competed in before. Pricing will be the biggest challenge and though Toyota has announced it will not get into a price war with its rivals, the specifications will be tweaked to ensure that costs don't go out of hand. Mitsubishi Lancer Evolution X and Volkswagen Beetle cars will be soon gracing the Indian car market.
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