Etios sedan first, hatch 3 months later, says Toyota chief

Toyota Kirloskar Motors, which takes the wraps off its much-awaited Etios small car on December 1, will start selling the sedan version first. The hatchback will follow three months later, Hiroshi Nakagawa, managing director of Toyota, told DNA.

A lot of Toyota’s future in India rides on the Etios, with the company wanting it to be its next Corolla.

In the last 37 years since launch, Toyota has sold more than 2.4 crore Corollas worldwide.

The once-largest carmaker has long wanted a volume-car just like the raft of models that Japanese rival Suzuki has in India, to ramp up market share in the country into double digits.

Etios was a project born out of that ambition, and the car has been four years in the making.

“Our current capacity is 70,000 vehicles per annum. We are now trying to expand it to 80,000. In all, the goal is to make 140,000 to 150,000 vehicles a month. The second plant (coming up next to the current one) will only make the Etios,” Nakagawa said.
Maruti Suzuki sells around 10 lakh cars annually.

In 2011, Toyota will produce 70,000 Etios, including the sedan and hatchback versions. “The variant ratio will depend on customer demand,” said Nakagawa.

The pricing of Etios sedan version is expected in the range of Rs6-8 lakh. That will pitch it against the Tata Manza and Maruti Swift Dzire.

“The B segment is the most competitive segment in India now and is the fastest-growing one too, with many players entering. We will have competitive pricing with best technology,” said Sandeep Singh, deputy managing director marketing, Toyota Kirloskar Motor.

The company is banking on its strong dealer network to achieve the volume target. “We currently have 120 dealers and by end of this year we plan to take this number to 160. We will also hire more engineers, sales persons, service mechanics to enhance the customer experience,” said Nakagawa.

“Most of the newly added dealers will belong to B and C class cities. As per our current business model, we sell almost 70% of our cars in big cities and towns. With the introduction of Etios, we wish to achieve 50-50 ratio,” he said.

Bookings of Etios will commence right after the launch on December 1.

But promotional campaigns are already on at sales outlets. According to a Mumbai-based Toyota dealer, Etios brochures are available at showrooms.

“Consumers are curious about the Etios. We receive at least 15 inquiries on a daily basis from people wanting to know details about the car,” the dealer, who did not wish to be named, said.
Toyota sells the Corolla Altis and Camry sedans, the Fortuner and Prado sports utility vehicles, and Innova, the best-selling multi-utility vehicle in India.

These are manufactured from company’s facility in Bidadi near Bangalore, which has an installed capacity to make 80,000 units per annum.

Toyota unveiled the concept of Etios in January this year. Since then company’s India team has been busy in creating a brand name for it.

The company has also roped in music maestro and two-time Oscar winner AR Rahman as brand ambassador for the Etios.