Toyota might be working on a Honda Mobilio rival

Toyota, the market leader in Indonesia, is under threat from competition and might be working on an all-new MPV. A report in Iotomotif says Toyota is working on an all-new MPV to compete against Honda’s upcoming Mobilio that will be launched next year and will debut at the Indonesian International Motor Show (IIMS) in 2014.

The Japanese auto major’s mainstay in the compact MPV segment, the Avanza, outsells its closest rival the Suzuki Ertiga by a huge margin and is followed by Daihatsu Xenia which is also a rebadged version of the Avanza. Indonesia’s favourite MPV is available with three engine options 1.0-litre, 1.3-litre or a 1.5-litre VVT-i petrol engines.

The question is why would Toyota develop an all-new model when things are going right? The things is, the Avanza is an old-school MPV – it has a body-on-frame design and is rear wheel driven which is not so modern and has its disadvantages. The Mobilio that will soon go on sale sits on monocoque chassis with front-wheel-drive setup. Toyota eventually has to develop a lighter and more modern monocoque frame with a front-wheel-drive layout and this seems like a very good time.

There were rumours about Toyota launching the Avanza in India and slotting it below the Innova. If this news is true, then Toyota might bring the all-new MPV to India to compete against the Mobilio and the Ertiga.