Report: Toyota planning another low-cost model for emerging markets

If the Toyota Yaris and the Toyota iQ weren’t low-cost and compact enough for the world, the Japanese automaker is considering yet another affordable subcompact for fast-growing markets such as China and Southeast Asia. According to a Japan’s Chunichi Shimbun newspaper, Toyota’s new compact car is targeting a launch date of 2012 and a price tag of under 1 million yen ($11,520 USD).

The car is said to be based on the company’s Vios and Vitz/Yaris subcompact models. Toyota is aiming to cut production cost of the vehicle by 30 to 40 percent by manufacturing more parts locally. The paper said that Toyota’s minicar unit, Daihatsu Motor Co, is working on a small car for Southeast Asia, and may sell the model under the Toyota brand.

Toyota declined to confirm the report. The Japanese automaker, which is the world’s biggest, has a relatively small presence in emerging markets like India and Brazil. The company’s new entry-level compact for India, known as Etios, will hit dealers at the end of 2010.

– By: Omar Rana

Source: Reuters