[ahuja365]

This sure is good news and it is essential for toyota to be a larger player in the value for money minded indian market.Now toyotas for ordinary people also sounds good

[phamilyman]

Question is whether they'll do a nano. i.e promise but underdeliver when you consider the final landed price (so to speak).

@ajman - FYI. Maruti has cut more cost for years!

[rnidumolu]

This I read in one of the sites:

Toyota Cars | Cos Reduction | Toyota Motors | RR-CI Scheme - Oneindia Living

Toyota Motors Corporation, the world's largest car maker is focusing to reduce the prices of its cars in order to roll over its sleeves against aggressively competing manufacturers like Hyundai.

Even in rapidly growing markets, Hyundai and VW have set a strong foot, for instance in India, Hyundai is the second largest car seller, within a short period, the Korean company has established itself very well in the country. Similarly in other potential growing markets too, other car makers are dominating which has given headache to Toyota.

Toyota cars are also 30% more expensive than Korean cars as according to Takeshi Shiranem the Senior MD of Toyota Purchases. So, the company aims at reducing the cost of vehicle so as to outscore the competitors.

Instead of manufacturing ideal component design for individual models, for the first time since last year, Toyota has started a scheme called RR-CI, wherein the company has asked not only its staff but also the suppliers, to do a team work in order to design and produce 165 designated components and targetting a unique cost-reduction target for each

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[GTO]

Toyota isn't going to reduce the price of their current product range, as much as it will design *new* economical models to compete on price (with Hyundai & other VFM players). The Etios is an example; the upcoming hatch & sedan distinctly seem to be built to a cost. In fact, its not even launched and already looks like a design out of yesteryears.

Thus, its not a matter of repositioning their currently offered cars. Rather, they will develop cars specifically for developing economies (and thus, expand their market). End of the day, the auto industry is under immense pressure to sustain itself (& post profits). In such a scenario, its not realistic to expect a 30% price cut on cars like the Camry or Fortuner. Not atleast without a compromise on quality, which is one of the reasons people pay a premium for the "T" in the first place.

P.S. : Hyundai has for years been credited with keeping the prices of Toyota & Honda in check. Their Sonata, for instance, is a success internationally. Toyota has always maintained that its watching Hyundai closely in the rear view mirror!