Toyota, Ford get moving with small car plans

The big guns of the auto industry have, after their initial reluctance, realised the small car is a money-spinner they cannot miss out on. Ford and Toyota have decided to roll out India-specific models that will race with rivals in a segment of the market they had deemed “cluttered” not long ago.

Toyota, which had plans to introduce a small car from subsidiary Daihatsu, will develop a new model, exclusively for India. Previous discussions between the two had failed because of disagreements on price sharing, sources said.

The debut, earlier planned for August ‘07, has been pushed back to late ‘08. It will be a B+ segment car, with a price tag of Rs 5-5.5 lakh, but dealers are insisting that the range be set at Rs 3.5-Rs 4.5 lakh, the sources added.


Ford India, another company that carries its “premium-car-maker” cache with pride, is revving up to take on Japanese and Korean rivals, whose small cars have driven profits. The US giant had stayed off this segment, saying it was overcrowded.