Toyota Kirloskar Motors unveiled its small car for India today – Toyota Etios. The teaser video released earlier by Toyota gave the impression that the car may have been a compact sedan model, however, the actual near-production ready model showcased at the Delhi Auto Expo 2010 revealed that it is a hatchback as well as a sedan. The model being showcased at the auto event is not 100 percent production ready but it gives an impression of what the final model may look like when the car is finally launched later this year.

Both the sedan and hatchback models have been specifically designed for the emerging markets. Toyota intends to compete fiercely in India with car makers like Maruti, Hyundai and Tata Motors that dominate the small car segment. Toyota already leads the segment of quality SUVs and sedans with models like the Innova, Fortuner, Corolla and Camry.

The sedan model of Toyota Etios is expected to be powered by a 1.5L petrol engine while the hatchback model will be equipped with a 1.2L petrol engine to save on excise duty. The car offers space and roomy interiors.

Toyota promises the Etios will offer high quality, comfort and good mileage, which makes car a value proposition. It is based on a new platform which comes with a new engine as well as high-rigidity light-weight suspension. The car will initially grace 10 cities of India including Mumbai, Cochin, Lucknow, Chandigarh and Ahmedabad. Toyota expects to sell 70000 units annually in India.