Toyota Motor Corp is mulling launching another small car in the Indian market by 2012 from its Daihatsu range of cars. “The Daihatsu range of small cars are doing very well in markets like Indonesia and Malaysia, and we are studying the Indian market to launch the Daihatsu brand. Should we launch this new brand, it would be across all passenger vehicle segments including the entry-level 600 cc,” said Dato Akira Okabe, senior managing director and member of the Toyota Motor Corporation board.

The new range of compact car will be based on its Vios or Yaris sub-compact models. The new model will have additional 30-40 percent of localisation that will be make its cost competitive in markets such as India, China, Brazil, etc. Daihatsu is also planning to introduce its own small car in the Indian market by 2012 which will make three small car Toyota models in the Indian market. Toyota’s premium hatchback model Etios is ready to be launched in the Indian market by December 2010 or January 2011.

Toyota is adopting a three-layered approach to grab larger market share in India and generate volume sales. Toyota is a brand leader across the globe but it still lacks its strong presence in the emerging markets.