Eyeing the success of the existing players in this segment, Toyota may introduce a compact MUV in the Indian market. Toyota have not yet taken a decision but are also aware of the market potential of the small utility vehicle segment. The Japanese automaker is keenly looking at Maruti Suzuki’s Ertiga, which is doing good numbers in the market. The other big competitor in this segment is the recently launched Mahindra Quanto which may see some good sales too.
The new word for the Indian market is ‘compact,’ and this word is no longer related to just the small cars but also to sedans and recently to SUV’s and MUV’s. Also, the sale of diesel-powered cars in India is on the rise. These factors may prompt Toyota India to introduce a new vehicle in the compact MUV segment. The companys’s Innova has been on the Indian roads for quite some time now and has proven to be a very reliable utility vehicle. There were news about the Avanza being launched in India by 2013. Avanza is a compact utility vehicle which will be placed below the Innova and is already being sold in countries like Indonesia, Thailand, Malaysia, Bangladesh and China. So a smaller version of the Innova, probably, could excite the Indian buyer and may prove profitable for the company.
Toyota is also planning to invest Rs. 900 crore to expand its manufacturing plant in Bangalore. This expansion will add another 1,00,000 units to its existing capacity of 2,10,000 cars annually. These investments will most likely benefit the production of Innova and the Etios. The company is also planning to set up a diesel engine manufacturing plant in India. However, these plans are put on hold considering speculations of imposing taxes on diesel powered cars and irregularities in the pricing of diesel fuel in the country.
