Toyota has had to rethink its strategy in the wake of Delhi Diesel Ban as cars powered by over 2000cc diesel engines were banned for three months in Delhi and National Capital Region.
Toyota has had to rethink its strategy in the wake of Delhi Diesel Ban as cars powered by over 2000cc diesel engines were banned for three months in Delhi and National Capital Region. Toyota now intends to be the real volume player competing against the likes of Maruti Suzuki and Hyundai with the Daihatsu brand which recently became its fully owned subsidiary.
The Japanese company was forced to cease operations of its plants near Bangalore
“There are so many customers of competitors who want to buy a Toyota but we lack a product line and they end up buying other brands. We have a responsibility to offer more choice. We see some possibility in the small car segment from that point. We are working very hard to streamline the priorities,” Naomi Ishii, managing director, Toyota Kirloskar Motor, told Business Standard.
“If Daihatsu can be utilised to meet the demand, we should do it. Compared to Toyota, Daihatsu is very good at designing the small car and manufacturing a cost-competitive vehicle. We have to study this area carefully before coming up with a conclusion. Some decision should be taken,” Ishii said.
Toyota has not seen the kind of success it would have wanted with the Etios and Liva which were its low-cost offerings in the Indian market. Daihatsu is seen as a kind of specialist in the small segment with cars placed and priced lower than Toyota. Toyota saw sales dip by as much as 33 percent in January 2016 and would like to arrest the slide by making its presence felt in the volume segment. Daihatsu, a fully owned subsidiary of Toyota is conducting a feasibility study with suppliers, trying to understand the cost structure of Indian market. The company wants to be in the volume segment and is currently developing a small car for the Indonesian market which could find its way into India soon.
Source: Business Standard