Toyota not planing ultra-cheap cars to boost sales in emerging markets

Article by Christian A., on March 23, 2012

Toyota president Akio Toyoda announced that the Japanese brand will not offer ultra-cheap cars in order to boost its sales in emerging markets. Apparently, Toyoda wants to be sure that the customers will receive a certain level of reliability and doesn’t want to disappoint them after it managed to clean its image due to its biggest recall.

Still, the competition has other plans as Nissan just announced the revival of the Datsun brand, while a German magazine reported that Volkswagen is also planning a low-cost car brand. Toyota president also added that in order to grow sustainably, it has to make a certain level of profit on cars, no matter how big or small they are.

Still, Toyota doesn’t have the ability to make cars for $6,000 like Tata Motors. "We won't risk sacrificing quality simply to meet a certain price range," he said.

For those who don’t know, in order to boost their sales, car manufacturers are eyeing low-cost cars to drive sales growth in emerging markets such as as Brazil, Russia, India and China. Toyota has created the Etios model for the Indian market but according to analysts its price of 400,000 rupees ($7,800) is still high to challenge cut-price stalwarts such as Maruti Suzuki.

If you liked the article, share on:

Topics: toyota, low cost car

Comments

Recommended

Nissan is commencing sales of the 2019 Nissan Altima on October 3, 2018 in the United States. As expected, the Japanese carmaker has already divulged the details and specs of...
by - November 26, 2018
Sports utility vehicles are still in heavy demand. Ford knows this very well as the American carmaker has seen sales of its SUVs surge dramatically by 28 percent in the...
by - November 26, 2018
BMW’s European customers who are looking forward to have a new range extender version of the 2019 BMW i3 (BMW i3 REx) will have to bear a bad news from...
by - November 26, 2018
Imagining the future of automotive luxury more than three decades from now seems to be a daunting task. It would be hard for a typical person imagine such future without...
by - November 21, 2018
Can a Dacia Duster be compared with a Ford Mustang? It would be difficult to do so as these vehicles compete in different categories and segments, have different price points...
by - November 20, 2018