Toyota plans to capitalize on car demand in developing economies by selling cheap hybrid cars to the masses. The company is approaching the Indian market first with this strategy.
The company believes that people in third-world economies are drawn to cheaper cars that offer handsome fuel savings. It extracted this insight by failing to popularize Toyota Camry Hybrid in India due to its lofty price tag.
Company representatives told Reuters that Toyota will source various local materials from within India and also ensure low production by fully indigenizing powertrain production.
Toyota will rely on its partnership with Suzuki to ensure technology sharing and low-cost manufacturing. A person privy to the matter stated:
The hybrid bet is a turning point. It will be a litmus test for Toyota’s future and success in India.
Toyota is yet to share more details regarding the kickoff of small hybrid vehicle production but is planning to expedite local hybrid car production in India soon.
Hybrid Car Production in Pakistan
Earlier this year, Toyota Indus Motor Company (IMC) began upgrading its production plant for the local assembly of Hybrid Electric Vehicles (HEVs) in Pakistan.
During the quarterly performance review session, the CEO of Toyota IMC, Ali Asghar Jamali, stated that the company aims to begin selling HEVs in Pakistan within the next two years. Without naming a particular car, Jamali stated that Toyota will sell its first HEV before July 2024.
Unlike India, however, Toyota IMC’s first locally assembled hybrid car in Pakistan will be Corolla Cross. Currently, the compact SUV is on sale in Pakistan as a CBU import, with a starting price of Rs. 12.25 million.
Given the ongoing inflation issue, the CKD version of Corolla Cross will cost no less than Rs. 8 million in Pakistan which is also expensive. Small cars don’t seem to be on Toyota Pakistan’s agenda for now so it’s anybody’s guess on when they will show up here.
No shock absorbers in any vehicles ‘produced’ in Pakistan. This is the easiest way to enhance the sales of medicines and also doctors’ earnings.