Toyota plans series of compact car launches

Sources close to TKM said that at least four models fitted with 1.1 litre and 1.3 litre engines are in the works. Hatchbacks and sedans are expected to be rolled out with these two engines. The first car in this series, however, will be a petrol sedan with a 1.3-litre engine pitted against the like of Suzuki's Dzire, Ford Fiesta and Hyundai's Verna.

The hatchback TKM plans to sell in India would be pitted against the likes of Suzuki's Swift and Hyundai's Getz.

The new product launches are expected to coincide with the start of commercial production at the second plant that is being built adjacent to the current plant in Bidadi near Bangalore, which can roll out 63,000 vehicles a year. TKM had recently announced that it would be investing Rs 1,400 crore in the new plant which is expected to have an annual capacity of 100,000 vehicles. Production is expected to start in the new plant in 2010.

The company also plans to roll out the diesel Corolla, Toyota's popular premium sedan from this new plant.

TKM is also getting ready to launch the sports utility vehicle (SUV) Fortuner in the price range of Rs 16-20 lakh depending on whether it would take route of importing fully built units or bring completely knocked down units to be assembled in India. Experts, however said that the top-end model of Fortuner in India will not cost more than Rs 15-16 lakh. The launch date for this SUV is expected to be between June and September 2009.

Responding to a detailed e-mail from Business Standard on the company's products launch plans, a TKM spokesperson wrote, "I am sure you will appreciate and understand that our future product plans are confidential in nature and as such, we are unable to share details pertaining to them."

Fortuner is based on the international Innovative Multipurpose Vehicle (IMV) platform. The company's popular Innova is also built on the same platform. Fortuner is a popular model in South East Asian markets like Philippines, Indonesia and Thailand. This SUV is currently sold in three variants with engine sizes varying between 2.5 to 3.0 litre and also available in both four-wheel drive version and as a 4x2 version.

Toyoto has 89 per cent stake in the Indian joint venture.