Toyota Enters India's Compact Car Segment with Liva Model

Strategic Insights -

Toyota Kirloskar Motor, the joint venture between Toyota and the Kirloskar Group, has launched the Liva model in India, priced at Rs 3.99 lakh-Rs 5.99 lakh (US$8,860-13,301). The Liva model will compete with market leader Maruti Suzuki's Swift and Ritz, as well as other popular cars like Hyundai Motor's i10 and i20, Ford's Figo, and General Motors' Beat. The company aims to increase production of the second plant from 70,000 units to 120,000 units by next year to meet future demand.

Key Takeaways:

  • Toyota Kirloskar Motor (TKM) has launched the Liva model in India, priced at Rs 3.99 lakh-Rs 5.99 lakh (US$8,860-13,301).
  • The Liva model will compete with market leader Maruti Suzuki's Swift and Ritz, as well as other popular cars like Hyundai Motor's i10 and i20, Ford's Figo, and General Motors' Beat.
  • TKM is investing Rs 3,200 crore to set up its second manufacturing facility in Bangalore with an initial installed capacity of 70,000 units per annum.
  • The company aims to sell 60,000 units of both Etios and Liva this year, with over 20,000 units of Liva expected to be sold.
  • TKM's first plant is located in Bangalore, and the company is currently producing about 6,000 units of Etios and Liva per month, which is expected to increase to 8,000 units a month by September.
  • The company plans to increase production of the second plant from 70,000 units to 120,000 units by next year to shorten the waiting period for Etios and to meet future demand of Liva.
  • TKM is willing to introduce a diesel variant of the two cars, but the launch timeline will be decided based on customer demand.

Statistics:

  • 70,000 units: Initial installed capacity of the second manufacturing facility in Bangalore.
  • 120,000 units: Expected production capacity of the second plant by next year.
  • 60,000 units: Target sales of both Etios and Liva for this year.
  • 20,000 units: Expected sales of Liva for this year.
  • 6,000 units/month: Current production of Etios and Liva per month.
  • 8,000 units/month: Expected production of Etios and Liva by September.
  • Rs 3,200 crore: Investment by TKM to set up its second manufacturing facility in Bangalore.

Sources:

  • PTI (Press Trust of India) - "Toyota enters India's compact car segment with Liva model" (no date provided)
  • Toyota Kirloskar Motor (TKM) press release - "Toyota Kirloskar Motor Enters India's Compact Car Segment with Liva Model" (no date provided)