Toyota and Honda take on India
By Chang-Ran Kim and Janaki Krishnan |
January 6, 2010, Wednesday
|
Print Edition
Print Edition
TOYOTA Motor Co and Honda Motor Co launched new compact cars to tap the fast-growing and price-sensitive Indian market as they and other auto makers seek to put a dire 2009 behind them.
Toyota, the world's largest auto maker is a laggard in India, Asia's third-biggest economy, and is facing increasing competition from rivals targeting one of the few bright spots in an industry ravaged by the global financial crisis.
At the Delhi Auto Expo yesterday, Honda also unveiled a new compact car, a five-seater model being developed especially for India and the other emerging markets that are quickly replacing major Western markets as a key battleground for auto firms.
"India will play a pivotal role in Toyota's global expansion plans and the time has come for us to strategically accelerate our growth here," Toyota Vice-Chairman Kazuo Okamoto said when launching its compact car, the Etios.
Volkswagen, Europe's largest car maker, said it also aimed to be a significant player in India. "If you want to be a major player in India in the mass market, small cars are the way to go," said Jochem Heizmann, a member of Volkswagen Group's management board.
Volkswagen last month agreed to buy 20 percent of Suzuki Motor Corp to access its small car expertise and Indian exposure through Maruti Suzuki.
Driven by the world's second-largest population, government incentives and a relatively strong economy, Indian auto sales are set to grow 16 percent this year to 1.4 million vehicles, after posting double-digit growth through most of 2009.
By comparison, United States auto sales due this week are expected to show the market there slumping to its worst year since 1982, or possibly 1970.
China is set to surpass the United States as the world's largest auto market with about 13 million vehicles sold this year.
Toyota, the world's largest auto maker is a laggard in India, Asia's third-biggest economy, and is facing increasing competition from rivals targeting one of the few bright spots in an industry ravaged by the global financial crisis.
At the Delhi Auto Expo yesterday, Honda also unveiled a new compact car, a five-seater model being developed especially for India and the other emerging markets that are quickly replacing major Western markets as a key battleground for auto firms.
"India will play a pivotal role in Toyota's global expansion plans and the time has come for us to strategically accelerate our growth here," Toyota Vice-Chairman Kazuo Okamoto said when launching its compact car, the Etios.
Volkswagen, Europe's largest car maker, said it also aimed to be a significant player in India. "If you want to be a major player in India in the mass market, small cars are the way to go," said Jochem Heizmann, a member of Volkswagen Group's management board.
Volkswagen last month agreed to buy 20 percent of Suzuki Motor Corp to access its small car expertise and Indian exposure through Maruti Suzuki.
Driven by the world's second-largest population, government incentives and a relatively strong economy, Indian auto sales are set to grow 16 percent this year to 1.4 million vehicles, after posting double-digit growth through most of 2009.
By comparison, United States auto sales due this week are expected to show the market there slumping to its worst year since 1982, or possibly 1970.
China is set to surpass the United States as the world's largest auto market with about 13 million vehicles sold this year.
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