Toyota launches new Corolla Altis in India, eyes bigger market share

Toyota, which is lagging behind market leaders Maruti Suzuki, Hyundai Motor and Tata Motors in sales, said it also plans to roll out its new small car by 2011. "Regarding the small car that everyone has been waiting for, we aim to start production and sales around the end of 2010 or early 2011," said Vikram Kirloskar, vice chairman of Toyota Kirloskar Motor Pvt Ltd (TKM), a joint venture between Toyota Motor Corp and the Kirloskar Group in which Toyota holds 89 percent stake.

TKM has enjoyed enormous success in India with its Corolla, one of the largest selling cars worldwide. Setting the benchmark in comfort and safety in the premium mid-size sedan segment, Corolla earned the No.1 spot in the JD Power IQS rankings for two consecutive years in 2003 and 2004.

"To help everyone become more familiar with this incredibly-advanced new Corolla, we gave it the name 'Altis,' which is derived from the word 'altitudinous,' meaning the absolute superiority. Our goal is to sell an average of 2,000 vehicles a month. And as the name implies, we aim to make the Altis the best-selling car in its class," said Hiroshi Nakagawa, managing director, TKM.

According to Sandeep Singh, deputy managing director, TKM, the new Corolla has a more powerful engine that the earlier model, delivering a maximum power of 130 HP. "Addition of features like electric power steering, optitron combination meter, multi-information display, steering wheel with audio controls & MID switch" enhance the driving pleasure, Singh said.

The new Corolla Altis, said Yasuyuki Kawamoto, chief engineer, Toyota Motor Corp, has "indisputable quality and dignity, which is beyond any other car in its segment."

"For Indian customers, we set two priorities. The first was styling. We wanted to create a dynamic and distinctive feel for outstanding presence. The second priority was luxury and advanced features. I am confident that we have created a 'one class above' vehicle for the Indian customers," he said.

"Corolla's good acceptance has also inspired several auto majors to explore the possibility of introducing models in the premium mid-size sedan segment," a company official said.

The main selling point of Altis, the official said, is Toyota's unparalleled quality and its intense passion for detail and perfection.

The new model is priced between Rs.10.83 lakh and Rs.12.86 lakh (ex-showroom, Delhi).

Meanwhile, TKM has delayed the launch of its international best-selling hybrid car, the Prius, in India.

According to Singh, lack of necessary infrastructure has forced the company to delay it launch. "Without the neccessary infrastructure in place such as charging stations that could charge these cars on highways, it will be difficult for Toyota to consider launching the Prius," Singh said.

"But we are studying the market," he said, adding tha Prius could be imported as completely built units (CBUs).

Presently, the only hybrid car selling in India is Honda's Civic Hybrid, which costs double the price of the normal petrol version.

Toyota has lagged behind other car makers in spite of having begun its operations in India 10 years back. "The last 10 years we've learnt our lessons. Due to increased focus on quality products and a slight slowdown in demand in domestic market, w have gone slow in sales. Now, we are ready to jump-start our business in the country. We'll increase our product line up," Nakagawa said.

"Ten years from now, India will become the largest automobile market in the world with an annual sale volume of more than 4 million vehicles. Therefore, India is a very important market for us," he said.

According to Kirloskar, the company is looking to capture 10 percent market share by 2015. "This year's target is to sell 63,000 vehicles, and by fiscal 2015 we are aiming for a market share of about 10 percent," Kirloskar said, adding, "The Altis marks our big step toward the achievement of this goal."

In the future, a planned launch of "several new cars on the small-car platform" would further help the company to gain volumes and boost its market share, he said.

The company also plans to ramp up its dealer network from the present 77 to 170 by 2010, Singh said. "We plan to strengthen our dealership network and reach out to new cities and towns," he said.

TKM, which sells the Innova, Corolla, Camry and the Land Cruiser Prado in India, currently has a 2.7 percent market share. It is investing Rs.1400 crore on setting up a second manufacturing facility in Bangalore to launch its small car for the Indian market.

Globally, Toyota sold 1.3 million units of the Corolla last year, accounting for more than 30 percent of Toyota's global passenger car sales.