Toyota will drive Lexus in by 2013

With the success of Etios, Toyota Kirloskar Motor is bullish about the Indian market despite the signs of slowdown. Hiroshi Nakagawa, managing director Toyota, spoke to Yuga Chaudhari.

After the success of Etios, is there any plan of getting into new segments?
The Indian market has big potential. As of now, we will focus on Etios. But we are planning to introduce Lexus in India. We are preparing to launch it somewhere around 2013. This year, we are just preparing and understanding the market. We are also looking at creating separate dealerships for the Lexus brand. Right now, we are at the planning stage. Volume-wise, the high-end market is not very big, but Indians have lot of money. There are many rich people.

Recently, Toyota recalled 45,000 cars citing technical issues. Was there any setback to Etios sales?
It was not a recall. We found a small problem and as per our quality policy, we decided to get it changed for our customers. We received many phone calls from our customers. However, we were surprised to see that customers were very positive about the entire service campaign we did. It has not deterred our sales in any way.

At the Toyko Motor Show last year, there was a mention that Etios platform will be used for making a multi-purpose vehicle (MPV), going ahead. What is the company’s plan?
We are looking at a possibility. Etios is a platform which can be used to make various cars. Though we have not yet decided.

What are company’s plans for exporting Etios?
We have not yet started exporting the vehicle. We are looking at exporting Etios from March onwards to South Africa initially. We are receiving a lot of interest for Etios from other countries. But right now, we are just focusing on South Africa.

After slowdown, what is your outlook for 2012?
Last year, we saw slowdown in the car industry due to interest rate hikes and fuel prices. But still, there was growth. The number of enquiries is high; however, the conversion has slowed down drastically. But still, customers want to purchase. We might see a flat first quarter this year, but sales should pick up from the second quarter onwards. The industry should reach 3.4 million unit sales figure this year.

How do you see Toyota growing this year?
Last year, we sold 106,000 vehicles and this year, we are planning to take it to 1,08,000 vehicles. Toyota launched the new Innova and Fortuner.

How do you see Toyota’s market share in the MPV segment with so many players getting into this segment - launching Innova-like products?
We are well aware that manufacturers are interested in this segment. It is tough to be around competitors, but I enjoy competition. From the customer’s point of view, one can choose a variety of products, which is a good thing. Our new Innova will be more price competitive, better fuel efficient and more feature-rich. Competition helps us getting better products, with more fuel efficiency and technology.