Toyota to challenge the might of Maruti Suzuki and Hyundai with its safest and most fuel efficient so far

Toyota Kirloskar is looking forward to build India's safest small car, which it claimed will be the most fuel-efficient and value-for-money for Indian car buyers. With the car, the company is hoping to challenge the might of Maruti Suzuki and Hyundai Motor India in this space.

Toyota Kirloskar had failed to make major inroads in the small car space, and is banking on the integration work between Daihatsu and Toyota which will start in full swing, to target the Indian A and B segment car space.

Akito Tachibana, MD of Toyota Kirloskar, said that he is excited about the involvement of Daihatsu Toyota in the collaborative activity.

"The most favourable story for us is that cars developed by Daihatsu will be made for the local market and at an affordable price. We will begin research to assess customer expectations in each market to define the concept of a vehicle before any development,” he told ET.

Models like Etios and Liva compact cars were earlier designed for India but these models did little for the company. This will be yet another attempt by Toyota to enter the small car space, thanks to Daihatsu's low-cost technology.

Tachibana, who had been in product planning in the past, is giving two briefs to his development team - the car should be the safest and it should have a pure hybrid solution.

Toyota has been exploring a small car and a compact MPV and SUV for India, but they will only come after BSVI regulations are implemented by April 2020, said people familiar with the matter.

With the government pushing for electric and hybrid cars, Toyota is planning to bring in small hybrid vehicles in the future. As a first step, the car company will be bringing in the locally produced Corolla hybrid in the next 12-18 months.

The company is likely to bring in the new Corolla Altis, a new mid-size segment sedan to take on Honda City, and is also likely to introduce the Lexus brand in India, which will come with a hybrid alternative.