[btirthankar]

This is 2008 now, seems like a inactive thread.

Innova has a larger target Volume and due to manufacturing and sales spread across geographies, so the development costs are recouped over its say 5 year lifecycle and the cost per unit remains low.

Corolla was never envisioned to be sold in such Volume. We are talking about a Global Car Company here - TOYOTA. They would seldom go wrong in their thinking and strategy. Something to learn.

Take the case of the much said about Maruti Gearbox. The Gearbox was always imported and never localized and formed a substantial part of the cost. Also the Zen could always be as expensive as a M800 if Suzuki Japan let go of recouping its development costs from Indian market.