Toyota is aiming to increase its sales in the growing Indian car market. Reports suggest that the company is planning to launch a low cost compact car. This sub-4 lakh car will be positioned under the Etios Liva hatchback and is likely to compete against the likes of Maruti Celerio, Chevrolet Beat and Dastun Go hatch. In order to keep its cost down, Toyota has asked its budget brand Daihatsu to help in making this affordable hatch.
If media reports are to be believed, Toyota is considering the five-door version of the Aygo compact car for the Indian market. This small car measures 3455mm in length and is equipped with good amount of safety and comfort features. This model is powered by a 1.0-litre petrol unit that is capable of producing 68bhp and 95Nm of peak torque. Power is transmitted to front wheels via a five-speed manual gearbox. Interestingly, the European spec model also gets AMT (Automated Manual Transmission) with paddle shifters. Considering an increase in demand for AMT equipped cars in India, we expect that Toyota could offer the new compact car with AMT gearbox.
However, Toyota needs to highly localize the Aygo compact car to keep its cost down. The company needs to localize engine and gearbox, and this could be achieved with the help of Daihatsu. Some reports also suggest that the Indonesian maker has already started initial studies to understand the Indian market. Toyota will also launch the next generation Innova and Fortuner SUV in the next 1-2 years.
