Toyota work on low cost car almost over

Bangalore: Toyota Motor Corporation is about to complete work on a low cost passenger car, which will be launched in markets like India initially even as the company’s President, Katsuaki Watanabe, is expected to visit the country towards the end of January.

The low-priced car is also expected to be launched in developed markets as well after launches in India, Russia, Brazil and China. Sources in the company told Business Line that Watanabe has been personally driving the low-cost model initiative and had asked the company’s engineers to develop a car based on low cost technology which should also adhere to the Toyota’s safety standards as well as being environment-friendly.

“The low cost car model is almost complete,” sources said.

Sources said that the low priced car will not compete with the Rs 1 lakh Tata car but it is also expected to be launched in developed markets as well. The low priced car will be launched in India initially followed by Russia, Brazil and China.

During his visit to India, Watanabe will meet top government officials as well as the Union Finance Minister. Watanabe is also expected to visit the Bangalore plant of the company after his meeting in Delhi.

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Toyota also plans to launch about five more cars, some of them on the Innova multi-purpose vehicle platform before 2015. By 2011, the company expects to sell about 2.11 lakh cars in India and about 5 lakh cars by 2015. The Indian subsidiary of Toyota Motor Corporation, Toyota-Kirloskar Motor Company is also set to post a 10—12 per cent increase in topline to about Rs 4,000 crore during 2007-08.

New models

Sources also said Toyota is planning to make some minor changes in the Innova model but it will not undergo any design changes. These changes will be carried out based on the customers’ feedback. The new Corolla model will, however, be different from the existing model, sources said.

The cost of manufacturing the new generation Corolla in India is expected to be between Rs 75 crore — Rs 100 crore, the same amount which the company spent for the current model which has been in existence since 2002.

All the Corolla variants are priced between Rs 9 lakh and Rs 12 lakh. Toyota has so far sold over 35 million Corollas in 142 countries.