Toyota has decided that it would not try any more of its luck in the small car segment. They have decided not to develop anything below the Etios Liva (according to Livemint.com) and will concentrate their energies on their bigger cars, some of which are doing great!

Small cars in India are the largest sellers. Maruti Suzuki’s Alto sells over 25,000 odd units a month, with its elder sibling WagonR grossing more than 14,000 odd units a month. On the other hand Hyundai’s Eon & i10 register around 8000-10,000 units per month each.

Toyota-Etios-Cross-Liva

With the market leaning so much towards the small car segment, it might come as a surprise to some as to why Toyota is deciding to ignore such a big volume pushing segment. To the watchful eye this would be a saving grace kind of strategy for Toyota, as the company has seen its sales figures evaporating like water in a desert.

Yes they have been plagued by production issues because of labour unrest But even before all that began, the figures have not been very encouraging. The Etios Liva saw a drop of 71.8 per cent in sales while the Etios saw a drop of 40.7 per cent in the last financial year.

Toyota plans to pour its undivided attention to the bigger car segment, such as the Corollas and Innovas. The company believes that they have tried to break the cost barrier in the small car mass market but they are not really happy with the results. But frankly speaking, it is the company which is to be blamed! You just cannot produce a bare-bones bad quality product and label it as ‘built-to-cost’ whenever you are cribbed about!

New-Toyota-Corolla-Altis-Pics-front

They have two upcoming products – Etios Cross and New Corolla Altis. If we look at them, Etios Cross is a forced crossover which is a half-hearted ugly looking attempt. The new Corolla Altis looks, for the first time young, will still continue to be sold with the immensely impotent 1.4L diesel engine. How can you consider launching a 90PS engine for a D-segment car!

Nonetheless, will these products do good or not will get revealed in a few months from now. For the time being, Toyota needs to break the stalemate with the workers as soon as possible. The company plans to offer a new settlement plan as per which their monthly pay is to be increased by 3,100 rupees (the workers had demanded for 4,100).


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