Toyota Etios to Increase the Competition in Hatchback Segment

The lure of small car segment in India has been such that almost every major car manufacturer has taken the bait and launched a small car. And Toyota now has given in too, albeit a bit late. It is a common knowledge that Toyota would be launching the Etios in December this year. The company is trying every little trick in its kitty to woo the folks in smaller towns of the country,

The elite hatchback group in India consists of Maruti Suzuki’s Swift, Hyundai i20, Volkswagen’s Polo, the Skoda Fabia and Ford’s Figo. Three months down the lane and they will another member to welcome. Etios, which means spirit in Greek, will supposedly be priced below the Suzuki Swift. It has been projected that around 2.7 million cars would be sold during 2010-11 and as many as 900,000 are expected to be in this segment, accounting for a whopping 30 per cent. That sounds like the right time for Toyota to make its move. But the Japanese company sees opportunity in its late arrival.

“We have studied the market extensively and the product is being fine-tuned after in-depth feedback from the consumers. We are set for the launch during December 2010 and are looking at selling 64,000 units during the first year itself,” says Sandeep Singh, deputy managing director (marketing), Toyota Kirloskar Motors, the Indian joint venture for Toyota with Kirloskar Group.

Also, the company is doing its best to kickstart its entry into the mass-market segment. “People in Indian metros are pretty well versed with Toyota. However, it’s not the same when we meet people in Tier 2 & 3 towns. We needed to address this issue,” Singh says.

Toyota is taking the publicity part of the car very seriously. After showcasing the concept car at 24 locations across the country, Toyota has started a corporate advertising campaign to talk about its quality revolution, in all Indian languages. Beginning this October, Toyota will launch the 360-degree multimedia campaign about Etios followed by a product launch campaign during December. Toyota will launch the hatchback and sedan under the Etios series with 1.2 litre and 1.5 litre petrol engines, respectively.

“At 24 locations, we have already touched base with 200,000 potential customers. Many of them have shown a desire to buy the new car. They have given us very good inputs about the colour, features, leg space and boot space. We have fine-tuned the car based on their feedback,” he said. Singh says that the Etios is a car that is meant for Indian customers.

Toyota is investing close to Rs 3,200 crore to set up its second manufacturing facility in Bangalore to roll out the car with an installed capacity of 70,000 units. Toyota also plans to export the Etios after a year, and considering a diesel version of the car too.

“We, from the Indian subsidiary, have strongly recommended introduction of diesel version which our parent is studying,” Singh says.

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