It appears the days of ’emerging market’ Toyotas may be numbered.
Toyota Motor has said India models will have “global specifications” in a bid to appeal to buyers’ increasingly aspirational tastes, its local manager told Reuters.
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Cars made specifically for India over the last two decades have not been as successful as hoped as Maruti Suzuki India and Hyundai Motor together accounted for about 65% of sales in a market where car costing less than US$8,000 dominate.
According to Reuters, Toyota now eyes the higher end of the market where the affluent middle class are willing to spend on premium cars such as SUVs.
“The Indian customer has changed from Indian local standard to global standard, and in the next 10 years it will exceed global standards,”Akito Tachibana, managing director of Toyota Kirloskar Motor told the news agency.
“We need to catch up with changing customers and changing government regulations. We are now a little successful in India but it is not enough.”
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By GlobalDataThe report said Toyota market share is around 5% and its two local assembly plants operate at about half of their combined 300,000 annual capacity.
Customers have criticised the Etios sedan and Liva hatchback for compromising on quality and finish to keep costs low.
But more expensive models such as the Innova multi-purpose vehicle and Fortuner SUV, costing over INR1m ($15,593) have done much better, though, and analysts told reuterssay Toyota’s strategy to focus on this segment is sound.
Toyota launched a new Yaris sedan ahead of the New Delhi motor show. The car, competition for Honda’s City and Hyundai’s Verna sedans, is expected to go on sale after April, Reuters said.
