Toyota Working on $5,000 Car Model
The $5,000 car will be produced in partnership with Daihatsu, a small-car Toyota subsidiary, in Bangalore, India, the aforementioned publication added. At this time, Toyota owns a single production facility in Bangalore, but is building another one, reportedly due to open in 2010. According to Autonews, the existing plant has an annual production capacity of approximately 100,000 vehicles, with the new facility aiming to boost the number of cars targeting emerging markets.
Low-cost cars seem to represent the only solution to get out of the global economic crisis for the majority of car manufacturers, with most buyers looking for fuel efficient cars, detrimental to high-performance models developing high engine power.
Although the American carmakers were often regarded as the companies with the highest financial loses, consequences of the global recession have also reached Asia and African markets, with the majority of local brands preparing job cuts and lowered production.
Toyota does nothing more than to align its offering with the market's opportunities, offering low-cost and fuel-efficient cars to customers looking for such models. Moreover, Indian and Brazilian customers have always been interested in cheaper cars, with Renault's Dacia brand and Tata Motors recording remarkable sales in these two markets.