Toyota ready with BRIC car strategy

Toyota has evolved an interesting car plan for the BRIC nations comprising Brazil, Russia, India and China. Top sources told Autocar Professional that the Japanese automaker will produce a 67bhp car with both petrol and diesel options for these countries beginning 2010. For the record, there will be a 1.4 litre diesel engine and two petrol engines of 1.3 and 1.5 litres each.

It is still not clear what kind of a car the company has in mind and it is most likely a B plus offering on the lines of the Swift and Getz. What is especially intriguing about this strategy is that the car will first be launched in India and Brazil by 2010. Sources say 200,000 units have been planned of which India will account for a little over 25 percent translating into 50,000 plus units annually.

It would be fair to assume that this will be the initial capacity and could gradually be ramped up in line with market demand. Brazil will take up a lion’s share at 150,000 units which clearly reflects Toyota’s bullish attitude towards the country and the prospects of doing better business there. Even today, Brazil is better remembered for Fiat’s huge success with the 178 platform.

RUSSIA, CHINA FOCUS

By 2012-13, Toyota proposes to launch the car in Russia and China and the numbers are mind-boggling at 600,000 units, again an indication of its more positive outlook for these countries. In all, 800,000 cars have been planned for the BRICs but India’s share is pathetic at barely 50,000 units or a little over six percent. If this is the case, it clearly shows that Toyota believes that the other three countries have much more to offer.

Readers will recall that it was Goldman Sachs which had first projected the big role that the BRIC nations would play in the future with a specific reference to their leadership roles in 2050. For the moment, India and China are the flavour of the automotive world with the latter registering stupendous growth rates lately.

Toyota’s India innings began in spectacular fashion with the Qualis utility-vehicle which quickly climbed the charts and became the segment leader soon. The company’s Corolla tasted success too but suddenly looks jaded in front of the recently launched Honda Civic whose sales have been soaring for a while now.

INNOVA STEADY

Toyota expected its Innova based on the IMV platform to take off with a bang but its steep pricing was perceived to be the deterrent for buyers. Subsequently, however, corrections have been made in the form of discounts and the like and sales have settled at 3,000 units plus each month. The challenge now is to increase this figure.

For a while now, the company has reiterated its commitment to bringing a small car and the possibility of manufacturing it in a new facility. An initial proposal with Daihatsu was reportedly scrapped because of an unfavourable costing structure and speculation has been rife since then that a unique model for India is on the anvil.

If the car for the BRIC nations is the one to fill this need, it will be difficult for Toyota to reach the ten percent market share it has targeted for 2010. Conservative estimates show that India'annual production then will be a little over two million units which means the Japanese giant still has some way to go.