Reference Auto

Will Toyota Etios become the next Corolla and see the auto major’s sales and profit skyrocket in the long term? Corolla had put Toyota in the top league of global automakers. Its sales were a mind blowing 2.6 crore in 37 years since launch.

Toyota is actually banking on the Etios to drive its India sales and earnings where car buffs are literally hungry for small cars that are in the above Rs 4 lakh category. For instance, Hyundai Motors’ i10, which falls in this category, is the Korean automaker’s highest selling car in India. The Toyota Etios, with its fab looks and eclectic features, could set the Japanese carmaker’s cash registers ringing. Just like the Corolla did.

Toyota Kirloskar Motors will start rolling out the Etios from next year and will initially test waters with the sedan version and later on (probably after three months) bring in the hatchback. Toyota will commence bookings for the Etios from December 1 and is targeting sales of over 65,000 units next year, a company official said.

The Etios will have two engine types - a 1.2 litre petrol one that will generate maximum power of 80 bhp. The second engine will be a 1.5 litre petrol engine which can generate 100 bhp of maximum power. The price of the hatchback is likely to be between Rs 4 lakh and Rs 4.5 lakh while the sedan could be over Rs 5 lakh.

“Our current capacity is 70,000 vehicles per annum. We are trying to expand it to 80,000. Our aim is to make 140,000 to 150,000 vehicles a month. The second plant (coming up next to the current one in Bangalore) will only make the Etios,” Toyota India managing director Hiroshi Nakagawa said. In 2011, Toyota hopes to produce 70,000 Etios, including the sedan and hatchback versions.

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

The company has a strong dealer network and this could help spur sales. “We currently have 120 dealers and will scale it up to 160 by the year end,” said Nakagawa. Dealers across the country are also getting a good number of queries on the Etios.

Toyota has appointed AR Rehman, who has won the Oscar twice, as brand ambassador.

The car giant has so far made a headstart with its range vehicles like Innova MUV and Fortuner SUV along with a range of sedans in India. Even the Etios has created a lot of excitement among prospective car buyers, report many car dealers.

Auto experts feel that the Etios may rev up Toyota’s sales substantially but for the car to reach the levels witnessed by the iconic Corolla could be a distant dream.