Toyota planning cheap car for emerging markets
Automotive News is reporting that Toyota will launch a really cheap car in the next two years. Most likely to be built in India, it is primarily intended for sale in emerging markets, but could also find its way into more developed markets, too. So far, India and Brazil seem to be the leading candidates for hosting production of this inexpensive family car. One reason the company may be siding with India is that Toyota has already acknowledged it will be building a new plant there. A new facility with an annual capacity of 100,000 units is being built near Bangalore's existing facility, which has a capacity of 60,000 units.Toyota trails Suzuki, Hyundai and Tata in the Indian market, so a new inexpensive model could help it capture more market share. They will face stiff competition from India's own Tata Motors, which recently announced a new small car that will start at just 100,000 rupees ($2,440) when it goes on sale late next year. Renault also offers a no-frills Logan sedan in India, and companies like Fiat and Volkswagen are also looking into this quickly expanding market.
[Source: Automotive News, sub. req.]
Get a WordPress.com Blog
Reader Comments (Page 1 of 1)
Don 3:02PM (8/22/2007)
You get what you pay for.
Reply
Barney 5:40PM (8/22/2007)
Indians may not want PS,ABS or even power brakes. They may not want automatics and can live without airbags and gadgets. North Americans can't get enough extras and willing to pay more for it all. You don't always get what yo pay for because the extras are usually overpriced.
Don 6:02PM (8/22/2007)
I dated an Indian gal for a while, and her father stated that Indians are only interested in cars that can be fixed by hand.
Barney 7:58PM (8/22/2007)
"are only interested in cars that can be fixed by hand."
Not just Indians!
Don 8:04PM (8/22/2007)
Very true again. Precisely the reason I keep my 1970 Mercury Cougar Eliminator.
kendrew 3:07PM (8/22/2007)
If it can meet safety standards in canada then im all for them selling it here... we really need a cheap car (for you know.... us cheap people)
Reply
SPG 3:14PM (8/22/2007)
Not only does this seem a tad greedy it mostly just sounds like Toyota is going to damage their image.
Toyota quality is going down in comparison to themselves just a few years ago and now a car that could compete with a $2,400 car seems like it would make a bad situation worse.
But who knows, maybe it will be the next Beetle or 2CV?
Reply
Jon 3:15PM (8/22/2007)
I thought all Toyotas were cheap
Reply
Gregg 3:34PM (8/22/2007)
Priced a Land Cruiser lately?
Stéphane Dumas 4:40PM (8/22/2007)
the main reason why they want to made a cheap car: a competitor to the Renault/Dacia Logan according to this French site http://www.caradisiac.com/php/essai_tun/topsecret/314/indiscretions-6.php Renault taked a big gamble with the Logan and this gamble beginned to play in favor of Renault. (Note then the decision to produce the Logan was made before Carlos Ghosn became the CEO/president or Renault)
I guess Toyota won't be outsmarted by the French LOL :-D
Reply
Stéphane Dumas 4:41PM (8/22/2007)
"I guess Toyota won't be outsmarted by the French LOL :-D"
I mean "Toyota doesn't want to be outsmarted by the French" sorry for the inconvience.
Reply
SherbornSean 5:11PM (8/22/2007)
Stephane,
You make a great point about Renault. They really are innovators with the Logan. Even if they never make much money off it, at gives them a foothold in emerging economies with buyers who a generation from now will have major bucks in their pockets.
Barney 5:42PM (8/22/2007)
"Lost leaders" work most times.
Reply
catgirlshyla 5:46PM (8/22/2007)
So when are we gonna see this tactic in the form of a new RWD Coupe?
Reply
Bob-omb 5:46PM (8/22/2007)
Everyone wants to do this. It's just like how Nokia and Motorola are cleaning up in emerging markets with dirt cheap, low tech cell phones. You gotta get in at the ground level with these "emerging" countries.
Reply
Bryan 9:36PM (8/22/2007)
Toyotas are already cheap in every way...have you seen a Carolla or Yaris?
Reply
G 3:53AM (8/23/2007)
Everyone can make the cheap car like Toyota.
However, no one can sell it more than Toyota.
Reply
Texter Vaid 9:41PM (12/24/2007)
Crash Test Dummy
-------------------------------------------------
Mr Osamu Suzuki seems like a middle tier / new world Savant.
His scorn seems distinctly self-doubt rhetoric. The 50% key is what Suzuki takes out of India for each and every car.
The competition that he faces from TATA in India is healthy business rivalry, not
kamakazi politics. He shouldnt forget that Japan faced the same disdain but a few decades ago when humbly entering the US market.
The "J" factor but a few decades ago could very easily be misconstrued as "Junk" when the first few low segment
cars were introduced in the US. In time , with refinement Suzuki too blossomed. Tatas are way ahead of that game
and are as serious as your intent for quality. Thrash talking can be a two way street or DO ITTA (Move out of the way).
Reply