Toyota yet to decide on small car project

Bangalore, Aug 7: When many a foreign player is joining the bandwagon of the high growth small car segment in the country, Japanese automobile giant Toyota is yet to make up its mind.

Speaking to reporters after inaugurating its third sales outlet 'Ravindu Toyota' in the city, Toyota Kirloskar Motor (TKM) Managing Director Atsushi Toyoshima said ''We are still thinking when to introduce our small cars in India. There are many new comers and even General Motors is thinking of producing a small car here.

However, we are still in the thinking process and it is too early to say when we will roll out our small car.'' Deputy Managing Director K K Swamy, who was also present, said the company was yet to zero in on the model of the small car, despite the Karnataka government giving the company the green signal to set up its second plant at Bidadi Industrial Area, near the city.

''As and when we decide the model, we will go to the government.

The model of the second plant has also been not decided yet,'' he added.

Mr Toyoshima said ''We need the second plant somewhere. But we are still undecided when to set it up. It will be there, but I can't say when.'' He said TKM's market share at present was four per cent and it was planning to scale up its sales and the production from the present level. ''This year we have projected a total sales of 56,000, up 30 per cent, as against 40,718 vehicles sold last year.''

However, segment wise TKM was a frontrunner with Innova having a 31 per cent share in MPV class and Corolla 35 per cent in premium car segment. ''We have sold 44,000 Innovas so far this year. This should be considered as good performance as this car was launched only last year,'' he added.

Mr Toyoshima said TKM would scale up its production rapidly to achieve its target of selling two lakh vehicles by 2010. The present capacity at its only plant in the country was 60,000 cars. ''At present the Indian car market is in the size of 11 lakh per annum and it is expected to grow up to two million by 2010. Our projection of 10 per cent share by that year is conservative and we are confident of achieving the target.'' To achieve its goal TKM would also scale up its dealer network to 200 from the present 57 in four years.

Globally Toyota had a share of 12 per cent in passenger car, while in Japan it was 40 per cent and the US 15 per cent.

UNI