Japanese car maker, Toyota Motor Corp, is planning to develop a small car for India and other emerging markets. It is planning to develop the car in collaboration with its mini-vehicle affiliate, Daihatsu Motor Co. and it will sell for approximately $5000. Toyota plans to launch this small car in late 2010 as its fourth brand after launching its high end Lexus and the Scion, which in the US is targeted towards the young generation.
Looking at Toyota’s current image, an image that believes in manufacturing quality products, it will be quite difficult for the company to produce a dirt cheap car without compromising on the quality. “Toyota engineers are used to doing the best. But the best isn’t necessary for an emerging-market vehicle,” said Andrew Phillips, a Tokyo-based analyst for KBC Securities. “It needs to be basic and sturdy. There are all sorts of features that you want to add on, but they add to costs.”
Moreover, the car will also have to compete with the Tata Nano and Bajaj-Renault-Nissan ultra cheap cars that are slated for a launch next year. Toyota is planning to bring the car to India and other markets by 2015, and it is planning to manufacture the car in India and export the same other emerging markets like Brazil.
