Toyota to launch Etios in December

Japanese car major Toyota is all set to storm the Indian car market with  the Etios, its entry-level sedan aggressively priced at Rs5.25 lakh.

The car, custom-designed for emerging markets like India will compete with well-established models like Maruti Dzire , Tata Indigo and Honda City. It is said to be the most ambitious product from the Toyota stable.

A measure of the importance of the car to Toyota's plans is the launch by Toyota's global president Akio Toyoda. Toyota has invested Rs3,200 crore on a new plant near Bangalore with an annual capacity of 70,000 on the project.

According to industry sources, the car would sport a 1500cc petrol engine, and is likely to carry an ex-showroom price of around Rs 5.25 lakh. Analysts say it would be placed at the price point as Toyota is keen on taking an aggressive stance in the market.

A diesel version of the sedan would be launched late next year, though its hatchback version (with a smaller petrol engine) is slated for launch in March 2011.

With the Etios, Toyota is aiming to target a larger market share of the fast-growing Indian car market, which, along with China, has emerged as one of the world's fastest growing. However, Toyota is a small player in the Indian market at present, though is strong in the segments where it has a presence.