Faced with a deluge of bookings for its new sedan Etios, Toyota is considering a unique offering for those in queue by giving them the option to shift to the company’s compact car, Liva, which debuts in March. Alternatively, the company is also considering to marginally increase the production of Etios to accommodate the rush.
According to sources, Toyota is worried that the seven to eight months’ waiting period for Etios may prompt customers to shift to rival brands. So, it is working on a plan to offer those with Etios bookings the option to go for the compact Liva, though details are still being worked out. It is not yet clear whether these people will get a priority in the delivery of the 1200cc petrol-engine Liva, which is likely to be priced around Rs 4 lakh.
The company hopes this move will ensure that the customers will stay within the Toyota fold, while getting an option to cut down on their waiting periods. The Etios, deliveries for which started earlier this month, has been a runaway success for the company and it has so far received bookings over 18,500 units.
When contacted, Toyota Kirloskar deputy MD (sales & marketing) Sandeep Singh said, “We are looking at various options, and a concrete plan is yet to be firmed up.” Singh, however, agreed that the company was looking at increasing the production of Etios from the plant near Bangalore, which has come up with an investment of Rs 3200 crore. Toyota plans to manufacture about 70,000 units from this plant between the Etios sedan and its compact version Liva in the first year. “Our manufacturing team is looking at this and a decision on enhancing production will be taken towards the end of February. However, if it happens, the increment in production may not be a major one. Whatever happens will be through improved efficiency and tweaking things here and there,” Singh said.
The company is gradually ramping up numbers at its plant and will start secondshift operations there. At full steam, the plant can churn out 200,000 units annually, though reaching this capacity will take time.
The Etios and the Liva are the two most ambitious products from Toyota’s stable to boost its share in the fastgrowing Indian car market. The company currently has a low single-digit share and has said it wants a 10% share to “occupy a mindshare of the average car buyer”. It has set a target to sell about 300,000-350,000 units by 2015.
According to sources, Toyota is worried that the seven to eight months’ waiting period for Etios may prompt customers to shift to rival brands. So, it is working on a plan to offer those with Etios bookings the option to go for the compact Liva, though details are still being worked out. It is not yet clear whether these people will get a priority in the delivery of the 1200cc petrol-engine Liva, which is likely to be priced around Rs 4 lakh.
The company hopes this move will ensure that the customers will stay within the Toyota fold, while getting an option to cut down on their waiting periods. The Etios, deliveries for which started earlier this month, has been a runaway success for the company and it has so far received bookings over 18,500 units.
When contacted, Toyota Kirloskar deputy MD (sales & marketing) Sandeep Singh said, “We are looking at various options, and a concrete plan is yet to be firmed up.” Singh, however, agreed that the company was looking at increasing the production of Etios from the plant near Bangalore, which has come up with an investment of Rs 3200 crore. Toyota plans to manufacture about 70,000 units from this plant between the Etios sedan and its compact version Liva in the first year. “Our manufacturing team is looking at this and a decision on enhancing production will be taken towards the end of February. However, if it happens, the increment in production may not be a major one. Whatever happens will be through improved efficiency and tweaking things here and there,” Singh said.
The company is gradually ramping up numbers at its plant and will start secondshift operations there. At full steam, the plant can churn out 200,000 units annually, though reaching this capacity will take time.
The Etios and the Liva are the two most ambitious products from Toyota’s stable to boost its share in the fastgrowing Indian car market. The company currently has a low single-digit share and has said it wants a 10% share to “occupy a mindshare of the average car buyer”. It has set a target to sell about 300,000-350,000 units by 2015.
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