Team-BHP - Toyota's future plans for India

The follow interview was with Sandeep Singh deputy managing director.
The full interview is here:'The new Toyota plant can produce any car'

some excerpts from the interview.

1.(The new plant)It can manufacture any type of car, right from a compact car to a sedan to a multi utility vehicle. Initially, we will manufacture the compact car. The platform is ready for any car.

2.There has been wrong news floating in the media. Those who have reported this have been making their own assumptions. We have never talked about the price of the small car. The small car will be available in gasoline.

3.Yaris never came here for testing, contrary to the reports in the media. I have not seen Yaris as a model lying in our factory for test.

4.Toyota is a leader in hybrid technology and the future lies there. But whether that kind of product will sell in India? Whether the time is right? No. But will it come to India? I think it will come very soon, because it is directly linked with the price.(The Prius)

5.We had reduced our production. But with the launch of the new Innova, we saw that the demand had suddenly gone up. Today, there is a waiting period of at least four weeks on Innova and three weeks on Corolla. So I don't think Xylo has impacted us so much.

6.Gradually Corolla sales are improving. We may not be able to meet the target as the market has dropped by 38%, but we are meeting our target in terms of market share.

So no news or indication of a small car.Why is toyota and honda so slow to market changes?

Quote:

Originally Posted by avishar (Post 1344481)

3.Yaris never came here for testing, contrary to the reports in the media. I have not seen Yaris as a model lying in our factory for test.

6.Gradually Corolla sales are improving. We may not be able to meet the target as the market has dropped by 38%, but we are meeting our target in terms of market share.

So no news or indication of a small car.Why is toyota and honda so slow to market changes?

2) Here on TBHP we have images of the car being tested, may be they were doing hot whether testing their powertrains or some other components, but Yaris was spotted on the road and also Passo was spotted on the Indian roads.

Xylo has imapacted it a bit, but the mainly cosmetic upgrade on Innova might have worked well as the car's image and looks are transformed by quite a bit if one looks at the car in flesh.

6) Yes, indeed. After the lauch of Altis, during some of the months, Altis sales were ahead of Civic. Now regurlaly they are swapping places and Altis has finially managed to give some very tough competition to Civic.

About the small car, I think after Jazz, we dont want any other overpriced car. I hope Toyota is smart enough to learn from other's mistakes. Bring in a decent well engineered small car ( which it can surely do as it as Daihatsu with them ) at a decent price.

Toyota plans 8 compact cars for emerging markets.
Aims to reduce dependence on US, Europe and Japan!

Quote:

Toyota, which lost the crown as the world's top automaker last year, is looking to reduce its dependence on the mature North American, European and Japanese markets. It wants to shift more of its weight to growth markets such as China, India

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Including the Etios model that it launched in India in December 2010, Toyota plans to introduce eight compact cars by 2015, targeting combined annual sales of more than 1 million vehicles in over 100 countries during that period.

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The upcoming cars will be priced around 1 million yen ($12,600) or higher and produced in local markets such as India, Brazil and China. Toyota said it would aim to procure 100 percent of the cars' components locally to lower costs - a move that would require a stronger R&D function in those markets

Quote:

Dismissed a report published in Japan's Asahi newspaper on Thursday that Toyota was working on a car priced around 500,000 yen ($6,300) for the Indian market, to be sold under a new brand from around 2016

http://www.autonews.com/article/2012...#ixzz1vrpExSmh

Toyota mulls launching more small cars, compact SUVs in India.

Quote:

TMC will consider launching more small cars and entering fast growing segments like compact SUVs in order to achieve market leadership in India,in the absence of a clear cut Indian government policy relating the auto industry such as fuel policy and import tariff, it is adopting a wait and watch strategy before deciding on setting up of a new diesel engine plant in the country or launching more hybrid cars.

http://economictimes.indiatimes.com/...w/20221395.cms

The market is ready and Toyota has to tap it.

Small Car- 1000 cc to 800 cc 5 door Hatchback entry level is ripe for Toyota. On better quality it will take away a huge market share from Maruti and Hyundai.

Where is the Toyota Starlet ?

Just look at the Bolero and Scorpio sales and the sucess of Innova.

The market is ready for - RAV4 4 Door with a diesel Engine.
Prado or Landcruiser II, old boby 70 series, soft top with manual locking front hubs, diesel engine.

The Corollas and Camries will hold their own. Some cheaper models of Corolla with less refinements are required at Nissan Sunny prices.

The market is also ready for :

Hi Lux - Single & Twin Cab
Hi Ace
Dyna 22 seater Bus
Hino Bus
Hino Trucks
Toyota BT Forklifts
Daithatshu Terios entry level 4x4 to take on the below par Duster.

But do you know why they are not interested in taking on Suzuki and Nissan head on ?

Toyota is part of the Japanese Kartisuru, where it has substantial holdings in Suzuki, Nissan, Mitsubishi, Sanwa Bank, Denso and each one in turn have substantial holding in Toyota with common drive train system manufactureres.

So in a nutshell everything Japanese is one and the same otherwise Toyota would have taken the bull by its horns on day one.

But opportunity lies in giving Tata, Mahindra and Hyundai a real run for their money and this is where Toyota needs to concentrate its efforts.

Quote:

Originally Posted by avishar (Post 1344481)

The follow interview was with Sandeep Singh deputy managing director.

5.We had reduced our production. But with the launch of the new Innova, we saw that the demand had suddenly gone up. Today, there is a waiting period of at least four weeks on Innova and three weeks on Corolla. So I don't think Xylo has impacted us so much.

So no news or indication of a small car.Why is toyota and honda so slow to market changes?

In my opinion, Xylo has definitely impacted the production of Innova. The latest marketing ads of the new Innova proves the point. Also, it is high time that they revamp the Corolla Altis. I also agree that both Toyota and Honda have been 'crawling on their knees' for far too long! I would definitely love to see a new Honda Civic launched soon. But, with this pace that looks a distant dream. Xylo's impact on the Innova directly proves the point of Mahindra's proactive strategies.

Quote:

Originally Posted by desertfox (Post 3129484)

But do you know why they are not interested in taking on Suzuki and Nissan head on ?

Toyota is part of the Japanese Kartisuru, where it has substantial holdings in Suzuki, Nissan, Mitsubishi, Sanwa Bank, Denso and each one in turn have substantial holding in Toyota with common drive train system manufactureres.

Is that the reason, why we have the Etios twins which look like It is an insult to India(since they said it is india specific design !!) :uncontrol

There is a bigger market beyond Maruti. We have M&M and Hyundai which together sell good numbers too.

Toyota can easily tap some customers from these two. We should have already had the Vios sedan. Look at the numbers of Verna(and sunny+vento+rapid) It is a big number.

I always felt Toyota focus is on the cab segment !!

We have had Qualis, Innova and Etios(they forced us to brand it as a taxi by giving such nice interiors). Even Corollas are known as taxis mainly abroad.

I liked that article where Toyota confessed they need to work on design and looks department. Hope they launch more global designs in India too. I dont want to see yet another Made for India by Toyota

The Etios is bascically a derivative of the Yaris, with only cosmetic and minor modifications. Basically the car is the same. I have owned and driven a Yaris in Dubai in 2007 ( It was my wife's car but I did drive it say 300 Km ).

There too the Yaris had a saloon and hatchback version.

Earlier platforms to derive more out for Etios were Toyota Echo which was the entry level Toyota Saloon from 1999 to 2005 and Corolla Tercel, where hatchback and Station Wagon versions existed from 1982 to 1999.

But in LHD market and RHD markets particularly where diesel cars are built the Toyota marketing strategy greatly differs.

Quote:

Originally Posted by desertfox (Post 3129570)

The Etios is bascically a derivative of the Yaris, with only cosmetic and minor modifications. Basically the car is the same.

I would like to differ with you on this topic. Etios was developed as Toyota's "entry family car" for emerging markets like India from scratch (not modifying an existing platform) after doing extensive research on Indian public's needs and requirements.

This project started in 2005.

In 2010 NDTV ran a series of programs on this project some of these links I am posting here.

There are distinct differences.

Let me name a few.

Yaris hatch came first whereas Etios sedan was first developed then the boot was chopped to create Liva.

Yaris is not sold in Diesel anywhere, whereas Etios is.

http://www.ndtv.com/video/player/fre...ily-car/178476

http://www.ndtv.com/video/player/fre...project/179658

Yaris and Vios are positioned above Etios and below Corolla and we may never get Yaris or it's sedan version in India as DMD TKM Sandeep Singh told so many times.

Have a read of this article explaining Toyotas India plans.

http://motoroids.com/news/toyota-cou...cars-in-india/

I think they are way to arrogant and take India for granted. They talk about wanting to be No.1 in India like other markets, yet they make a loganish etios for India and try and make us believe that the Uber Cool Virat Kohli also drives it. Seriously its like trying to sell a keypad phone in the age of touchscreens.
They want to beat Hyundai? Well then bring in a proper sedan like the Vios and compete with the Verna, bring a proper hatch and take on the I10 and Swift.
Replace the Corolla as soon as the world launch happens next month. Dont make us wait for one till end of next year. Be proactive.

Quote:

Originally Posted by nik_kapur (Post 3129633)

Totally agree with you.

Why do they need one year to launch new Corolla in India ? Even Countries like Thailand/Malaysia/Philippines have better looking Toyota cars and better Toyota taxis too. I too felt they should have had the Vios already in India.

Offtopic: Virat Kohli drives Liva and owns CelKon mobile too. May be he has a bad taste or he was bagged pretty early in his career for peanuts :uncontrol

Yes, Toyota has been very arrogant. They are selling woefully expensively priced Corollas and Innovas not to mention the Fortuners and they want to be No. 1!! The Vios is sold in neighbouring Thailand so what makes it difficult for them to sell it in India. Instead they are trying their luck by cosmetic upgrades to Etios and Liva. They should be taught a lesson like the one to Honda.

The Avanza would have got a headstart in the compact SUV sector but Toyota has been loathe to introduce it here. I somehow think the only Jap company we can rely upon to bring in the right products on time seems to be Nissan. The Sunny is well priced, Micra maybe not, Evalia is well priced too, and they are churning out variants fast enough. Maybe Honda will start to copy Nissan in sometime.

I have always liked Honda Cars more than Toyota cars in India, hence potential customers like me, who want looks with practicality generally avoid the Toyota Brand. They need to get some good looking cars in India for such an audience.

Their current portfolio has not a single car which will turn heads on the road, except may be the fortuner (due to its sheer size and road presence only)

Honda is much better than toyota in the looks department with comparable reliability, I think.