India’s high volume small car market hasn’t failed to woo Japanese carmaker Toyota Motor either. Known for their large MPVs, SUVs and some popular premium sedans, Toyota Motor Corporation wants to enter India’s small car market along with its subsidiary Daihatsu.
While Maruti Suzuki has been reigning supreme in the small car space, Toyota wants to try to upset the Indo-Japanese carmaker’s dominance in the segment. Currently, the market is also shared by the Hyundai. The latter has also been reigning supreme in the segment for the past couple of decades in India.
So, Toyota wants to make a strong entry into the segment with its subsidiary Daihatsu. The brand specializes in small cars and so the Toyota is likely to bring in a range of small cars collaborating with Daihatsu. The entry of the Japanese carmaker into the small car segment is expected to happen around 2020-2021, while a final decision is likely to be made in a few months from now.
The Toyota and Daihatsu have already announced that they would enter the small car market for the emerging markets by setting up an internal company, which will carry out all the process ranging from planning to production.
Toyota will establish the internal company by January 2017, for which the carmaker carried out various studies over the years. The association will look forward to gaining a good market share in the A and B segments, where the Etios gets sold. Toyota has done little in this segment, which is dominated by Maruti Suzuki and Hyundai.
Technically, it is sure going to be Daihatsu’s forte but Toyota will be wielding the market decisions. The small cars, manufactured for the Asian markets, are likely to carry a “Toyota” badge, due to the brand popularity of the Japanese carmaker.