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
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
are also looking into this quickly expanding market.
[Source: Automotive News, sub. req.]