NEW DELHI: Japan's top automaker Toyota Motor Corp has announced its plans to introduce eight compact car models especially designed for emerging markets by 2015 in an attempt to catch up to front-runners such as Volkswagen AG and General Motors Co.
The car maker is also looking to reduce its dependence on the mature North American, European and Japanese markets. It intends to shift more of its weight to growing markets such as China, India and Brazil, the markets which are dominated by Volkswagen, GM and Hyundai Motor Co.
The Japanese automaker targets to sell half of its vehicles in developing markets by 2015, higher from nearly 45 percent last year and 18.6 percent in 2000.
Toyota Executive Vice President Yukitoshi Funo said, “In emerging markets, there are four or five automakers vying to take the lead in sales volumes. Particularly in the Southeast Asian region, Volkswagen and others are looking to challenge our lead so we can't be resting on our laurels.”
The upcoming cars will be priced around 1 million yen or higher and produced in local markets such as India, Brazil and China. The company would aim to procure 100 percent of the cars' components locally to lower costs.
Toyata hopes that by next year, the production capacity in emerging markets will increase to 3.1 million vehicles a year, from 2.38 million in 2010, matching the level in Japan.