Toyota Tries to Break Indian Market with New Low-Cost Etios Sedan

The world's largest automaker, Toyota Motor Corp., is eyeing emerging markets with a new low cost model that was unveiled this week in India. The production version of the 2010 New Delhi Show Etios Concept is available at launch as a four-door sedan model, but will be joined by a five door hatchback called the Etios Liva in April of 2011.

The company said the Etios has been developed specifically for Indian customers and will be built at a plant in Bidadi, near Bangalore. However, Toyota eventually plans to offer the small sedan in other emerging markets such as China, Brazil, Thailand and possibly certain regions of South America.

The 4.265mm (167.9-in.) long sedan boasts a rather large boot with a luggage space of 595-liters and is powered by a newly developed 1.5L, 16V DOHC engine coupled to a 5-Speed manual transmission. The Etios sedan will be available in four variants, J, G, V and VX, with prices ranging between 4.96 Lakhs and 6.86 Lakhs making it the company's most affordable offering in India.

Commenting on the launch of the Etios, Mr. Akio Toyoda, President TMC said: “India is a key market for our overall strategic growth plans, and the launch of the Etios is definitely a milestone not only for Toyota in India but for Toyota globally."

"We at Toyota believe, ‘the road makes the car’ and the Etios is a product of real-world testing on roads across India. Our testing has covered a hundred thousand kilometers on every kind of road that Indian drivers encounter, from Kolkata to Mumbai, from the Himalayan foothills to the tip of the Indian peninsula

According to JD Power, Toyota sold a little over 60,000 cars in India through October, compared to 870,000+ sales from Marutti Suzuki, which is the market leader in the country.

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Toyota Previews Low-Cost Small Car with Etios Sedan and Hatchback at New Delhi Show

When we first heard about Toyota's plans to introduce a compact car developed specifically emerging markets such as India and the South American region, our mind went to a Japanese version of the Renault-Nissan group's low-cost Dacia Logan. And true enough, Toyota's new Etios concept that was unveiled at the New Delhi Show is exactly that - it even looks a bit like the Logan too.

Toyota showed off both a five-door hatchback and a four-door saloon version of the Etios that will go on sale initially in India towards the end of the year. The production Etios will be offered with two newly developed petrol engines, a 1.2-liter and a 1.5-liter unit, while a diesel option could follow after.

Etios chief engineer, Yoshinori Noritake, said at the show: "I visited many Indian cities and homes to learn the market and to hear from the consumer directly. Over four years, more than 2,000 engineers have been involved in the development of the Etios, and each has devoted his or her best effort with no compromises. I am convinced in my heart that the Etios offers joy of ownership and quality of life to consumers in India."

Toyota alliance in India that's called "Toyota Kirloskar Motor Private, Ltd" will produce the Etios from late 2010 at its second plant, which is now being built specifically for the new car.

The Japanese automaker expects annual sales in India to reach 70,000 units while exports in other emerging markets such as Russia and the South American region are planned.