Toyota is planning more than one small car for India. It is one of the largest car makers by sales in the world; however, it occupies a small 3.5 percent share in India. It currently sells Innova and Corolla in India and imports Camry and Prado for the Indian customers. However, none of its models cater to the small car segment in the country that accounts for nearly two-third of car sales market.
Toyota marks its presence in the country with a joint venture with Kirloskar Motors. It now aims to add more small cars to its product portfolio. Rising fuel prices and demands from Indian car consumers has made the company plan small cars for one of the fastest growing car market.
The company is expanding its manufacturing capacity in Bangalore and plans to invest another Rs. 1400 crores in the country. It shall launch its new small car by 2010 that shall comply with the small car definition of the government i.e. below 1200cc model in petrol and below 1500cc model in diesel variant. This way it would also be able to avail the benefit of lower excise duty on the small cars.
