Toyota may be the biggest car manufacturer in the world by volume but doesn’t occupy the podium in our country. With 4.8% of market share this year (Jan-Jun), the company stands in fifth place. For the current decade, the Japanese car maker has recorded its worst market share when compared to the previous years. This can be attributed to the lack of segment leading products, the Etios and Liva don’t stand a chance in front of better competition while the Innova and Fortuner are both dated now. The Corolla is fresh but overpriced.
We have seen companies belonging to the premium and economical classes entering smaller cities to expand their foot print. While Audi/Mercedes have already set up bases in Tier-II and III cities; Maruti and Hyundai have also gone rural a long time back. The sales figure indicates that the rural market has been contributing a dual-digit market share for auto giants. Toyota did realise the potential of rural India and decided to play the gamble; an attempt to regain its lost market share.
Toyota has decided that it will step into the country side with its hatchback Etios Liva. For its price tag and features the company believes that the Liva would be the perfect package they could offer and without delay the dealers have already started showcasing the Liva on the kaccha roads. Toyota will also be expanding its dealership network in India with the country side likely to receive more numbers. Being optimistic, the overall passenger vehicle sales in the country is expected to double while the share of rural areas is expected to increase substantially. Currently the Etios Liva sells just 1500 units a month.
