Toyota small car that is proposed to be launched by December 2010 will be launched in both petrol and diesel variant. The variants will be powered by a 1.2-litre or 1.3-litre engine. The company also revealed that the compact car will be introduced in both sedan and hatchback.
On account the managing director of Toyota, Hiroshi Nagakawa said, “The new strategic small-vehicle project has reached half-way in its development. We will launch it in 22 months.”
He also added, “The market condition for Toyota India is tough. Our sales have dropped by 50% and we had to cut production by 30% due to an inventory pile up. But we have managed the inventory problem from November to January and are now producing 3000 vehicles per month. The production volume will be increased step by step in February, March, and April.”
Though the car is designed keeping in mind the taste of Indian car buyers, it will be marketed in other countries as well. The company is also planning to bring in Toyota’s financing arm, Toyota Financial Services, to India.
Toyota has also made a huge investment on its production facility being established near Bangalore. It is expected that the first phase of this production facility will produce 70,000 vehicles annually. It is a flexible plant that can be used to produce five different car models. At present the facility will be used for the production of Toyota’s small car.