Toyota defers Liva launch till June to clear Etios backlog

The world's largest carmaker Toyota have postponed by two months introducing the hatchback version of its sedan Etios in India to June as it tries to clear order backlog of the recently launched car.

The company, which is present in India through a joint venture with the Kirloskar Group, will be doubling its output at the Bangalore facility to a minimum of 5,000 units every month from April for the Etios sedan.


"We have received very good response for the Etios. We are doubling the production of the car by starting the second shift from April," Toyota Kirloskar Motor (TKM) Deputy Managing Director (Marketing) Sandeep Singh told PTI.


Etios' waiting period is 4-6 months and TKM has decided to fulfill its commitment to existing customers first.


"Hence, to clear the order backlog, we have decided to postpone the launch of Liva by about two months," Singh said.


The company had launched the Etios in December last year and had announced its plans to introduce the small car Liva with a 1.2 litre petrol engine in April 2011.


As part of the new plan, the company will now enhance Etios output to a minimum of 5,000 units from the existing about 2,500 units per month, Singh said.


TKM has so far received about 26,500 booking orders for the Etios since its launch and the company has delivered only about 5,000 units, he added.


The company has invested Rs 3,200 crore to set up its second manufacturing facility in the country with an installed capacity of 70,000 units per annum to roll out the Etios. It has launched the car with a 1.5 litre petrol engine.


The Japanese auto major had launched Etios with a price tag of Rs 4.96 lakh-Rs 6.86 lakh (ex-showroom, Delhi). It has been pitched against other entry-level sedans such as Maruti DZiRE, Mahindra Logan and Fiat Linea.


At the time of the launch, Singh had said the company was targeting to sell 70,000 units of Etios, including the hatchback, in 2011.


When asked about its sports utility vehicle Fortuner, Singh said: "We had started the booking again in January and so far received about 4,000 orders. The waiting period for the vehicle is 3-4 months now."


The company's first facility at the same location has a production capacity of about 80,000 units per annum.


On the impact of rising commodity prices, he said: "We are under pressure. We will review the prices of our products by March-end."


TKM currently manufactures models like multi utility vehicle Innova, premium sedan Corolla Altis and SUV Fortuner in India. It also sells sedan Camry, SUVs Prado and Land Cruiser and hybrid car Prius in the country as fully imported vehicles.

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