Toyota Kirloskar India has announced to stay away from the small car segment and concentrate on only big cars like the Innova and Corollas. This is a very bold decision taken by the company when 50 per cent of the total cars sales in India is contributed to by the small car segment.
The small car market consists of vehicles that are priced below Rs 4 lakh. This is the budget segment which majority of the Indian consumers like to be a part of due to affordable prices of the cars. Currently, this segment is dominated by Maruti Suzuki's Alto and Wagon R and Hyundai's i10 and the Eon. Even Nissan’s Datsun brand launched the GO a few days ago to cater to these set of customers.
"Mass market segment is not for Toyota. I think Toyota’s game will be in bigger car segments such as the Corollas and Innovas segment. We have tried hard to break the cost-barrier in the small car segment but we have just not been able to do so," admitted Vikrom Kirloskar, vice-chairman, Toyota India.
The company is expecting to gain more margins and profits if they concentrate on the big cars segment. The Innova has been the leader in the segment since many years now and we can expect an Etios-based MPV to make it to the Indian shores soon.
“Toyota will bounce back into the game very shortly. We have a lot of models coming in. If you have studied our journey so far, it has always been cyclical,” he added.