[psankar]

Osaka, Japan/New Delhi: Toyota Motor Corp is struggling to crack the affordable end of India's car market and has called on mini-car affiliate Daihatsu for help

The request could see Daihatsu take the lead in developing no-frills cars that would be sold under the Toyota name and through Toyota's sales channels in India.

"We always look at various options, including collaboration with Daihatsu. However, no decisions have been made," said Ryo Sakai, a Tokyo-based Toyota spokesman, declining to elaborate.

More information at:
http://profit.ndtv.com/news/corporat...-report-689869

[revintup]

I hope the "no frills car" does not compromise on safety.

If Toyota decides to go the Datsun Go way, then it is in for a rude shock because from now on at least the general public will be wary about sub-standard cardboard and glued together cars being shoved upon them.

Am sure this plan of Toyota will be shelved until the Indian market specifies the safety norms.

[extreme_torque]

Either something is seriously wrong or Toyota does not want to make the effort. If Hyundai can sell a fully loaded current European generation car here along with Volkswagen why can't Toyota do it? They already have good supermini's in the form of Yaris and the Aygo. How hard can it be?

[karanraheja]

I dont think Toyota needs help from Daihatsu in making a cheap car they already made a cheap car Liva/Etios and priced it higher.

Toyota desperately needs the Yaris/Vios combo to get volumes in the 5-10 lacs segment. Im not liking Toyota s attitude of "Yaris/Vios is too expensive for Indian market".

[Speed.Demon]

And that's the problem.

Toyota does have some good cars available abroad, but they aren't ready to reduce their profit margins, and hence make them affordable here in India.

Even if Toyota does bring the Yaris here, it will be very absurdly priced.

[Soumyajit9]

Originally Posted by Speed.Demon

And that's the problem.

Toyota does have some good cars available abroad, but they aren't ready to reduce their profit margins, and hence make them affordable here in India.

Even if Toyota does bring the Yaris here, it will be very absurdly priced.

Absolutely bang on.

The arrogance to over price their product will eventually take a hit in the longer run.
As such the Innova and Fortuner are so very much over priced.
They did the same with Liva and Etios, and failed miserably.

Like you say, it is time to launch some fresh faces like Yaris in the Indian market and make it affordable for the masses.

Coming to the "no-frills" car can be no frills on gizmos, but they should never ever compromise on the structure and safety of the car.
They can now start targetting at Taxi-Segment cars, just like Tata have done with Indicabs and its variants.

[saket77]

Feels like Toyota's effort in India is half-hearted. Toyota, with its image and capabilities can achieve much bigger.
Just looking at the interiors of Etios/ Liva turns buyers off. Agreed they have a good performer under the hood, but then in a market when every car is trying to look like one which is a segment above, Toyota must re-think where to employ cost cutting and where not!

[sudeep.pandya]

Haha! As if they have frills in their current lineup.




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[arnabchak]

Why Daihatsu?

They have the Kaizen processes and the best practices.
They make "The World's Best Sedan" and best production lines.

They do not have the attitude.
Etios and Liva are their budget offerings. Just do some basics right, good interiors and see it do much better.

Daihatsu does not specialize in any rocket science that Toyota doesnt know!!

[supremeBaleno]

The "over-priced" Fortuners / Innovas have been flying off the shelves like hot-cakes, inspite of the price. So why would they reduce prices ? No seller in that situation would. And inspite of the 25L price for an SUV, I like the fact that maintenance is dead-cheap and costing just about what we pay for hatchbacks from other brands.

Daihatsu or otherwise, they really need a volume-model in India, which is where the bulk of the market is.

@arnabchak, I think you are referring to Toyota when you say "They"...
But since your first line is "Why Daihatsu?", it seems to imply that you are referring to Daihatsu. When I read your post the first time, I thought that way, only to be corrected by your last line. Do request mods to edit your post, to avoid confusion.

[vb-saan]

Another Datsun-kind of portfolio in the making? The previous gen Diahatsu Terios is already there in India - as Premier Rio.

[Speed.Demon]

Seriously, what is Toyota smoking?

The main reason why the Etios failed is because of the crap interiors and high price.

Now they're planning to bring in a car with even more basic interiors in a car from a whole new brand, and I'm guessing that the price won't be exceptional VFM either.

Toyota needs to understand that the badge alone doesn't make the cut anymore. People want their cars to feel like they are from two segments higher.

[wilful]

Originally Posted by vb-san

Another Datsun-kind of portfolio in the making? The previous gen Diahatsu Terios is already there in India - as Premier Rio.

Just what flashed into my mind as I read this thread. Another Datsun type on the way to sink in the quagmire that is the Indian market.
If they could bring a hatch (and not a dead cheap one at that) to seriously challenge Swift - with decent looks, features etc - I think they could make a mark.

[libranof1987]

I'm surprised at Toyota's nervousness! Not that they shouldn't be nervous but because they are looking at a solution that might not help.

If the Toyota-badged Etios/Liva bombed, that too fairly clearly due to how bare-bone they are and the audacious price they are offered at, how is bringing in cars from a no-frills manufacturer going to help them?!

They *really* need to leave aside their arrogance and come up with worthy offerings and those at a reasonable price point.

[CrAzY dRiVeR]

Originally Posted by libranof1987

I'm surprised at Toyota's nervousness.

+ 1. But for a different reason.



Toyota is neck to neck with Honda despite having a portfolio of more expensive and premium products. The Etios twins are an exception for sure, but the entire Honda lineup now consists of mass-segment cars and they haven't fared a lot better than Toyota. And the reputation has taken a beating these days.

Toyota needs to learn from it's own portfolio. There is a reason the Innova, Fortuner and Corolla have become a success. Legendary Toyota reliability and fuss-free ownership experience mated to average luxury products. They don't need too much bling and equipments to sell, but shouldn't make the owner feel cheap either like the Etios twins manage to do.

May be they already realise that? What if Toyota has decided that the lower segments require compromises that it can't take? The next generation Etios twin replacement might come with compromised quality from Daihatsu stable, while Toyota can release a premium priced option above it.

Hope the safety standards get established before they make this move. Otherwise we may see a repeat of the Datsun story.