Toyota to begin production of Etios by December

World's largest car maker, Toyota is set to begin production of the its concept car, Etios, targeted at the B segment customers, by December this year, Toyota Kirloskar Motor (TKM) managing director Hiroshi Nakagawa said here today.

"Etios means spirit and principle. This car of ours is targeted at the middle level managers and young professionals and will be priced competitively," Nakagawa told mediapersons after inaugurating the Toyota Q-World Auto show here.

The company would launch both hatchback and sedan under the Etios series with 1.2 litres and 1.5 litres petrol engines respectively, he said.

Nakagawa said that though the price of the car would be decided before the official launch, but its hatch back version would be in the range of Maruti Swift and Ritz, while the sedan version would compete with Tata Manza and Maruti Dezire in the B segment category.

The company, which is present in India through a joint venture with Kirloskar Group, has invested over Rs 3,200 crore to set up its second manufacturing facility in Bangalore for Etios with initial capacity of 70,000 units per year.

"The manufacturing capacity is spread over 425 acre and based on the customer response after the Etios rolls out, the manufacturing capacity of the plant could be increased to nearly 200,000 units per year," Nakagawa added.

Etios has been developed by Toyota specifically for the Indian market and would be manufactured first for the Indian market and then it would be exported.

"Most of our cars have been designed for the American and European markets first and then modified for the Indian market. But Etios has been designed specifically for the Indian conditions," TKM Executive Managing Coordinator Koji Nagata said.

The company has been developing the model since the last four years with the help of over 2,000 engineers from its Indian and Japanese operations.

"The preparation for launching the small car is on track. The plan conception, supply to our base and dealer network expansion is going on," Nagata said.

The Etios is attractive, high quality car at an affordable price, he said, adding that lot of parts are being manufactured locally which had enabled them to bring down the price to a competitive level.

Asked about the Indian markets, Nagata said that it was very important and big for Toyota, which is expected to grow by up to four million units by 2015 in the country. The company plans to expand dealership to 150 by the end of 2010 from its existing 97 outlets, he added.