Toyota to Build Low-Budget Model for Asia

Toyota is reportedly working on a new affordable model specifically designed to tackle the growing demand for this type of vehicle on the Asian market. A report by the Nikkei business daily reveals that Toyota intends to develop the new project together with its firm Daihatsu and will be at first addressed to Indonesia while, at a later date, it will be launched in surrounding markets as well.

Voices familiar with the matter suggest that the new model will be smaller than the Etios launched in India and will be priced at around $9,500, depending on trim levels and equipment.

Production will be Daihatsu's responsibility, with 70 percent of the cars to be rolled off the assembly lines to be sold with a Toyota badge. A new factory will be set up especially for the new model, with output estimated at 100,000 units per year, with 50,000 units to be made only in the first year.

Daihatsu will thus spend around 20 billion yen on the new facility which is expected to begin building cars in 2013.

Toyota is also working on an electric vehicle addressed to China which will be developed in collaboration with FAW Group. The car will be based on the Vios compact expected to be launched in the country soon and will be equipped with an electric powertrain designed by Tianjin, owned by FAW. The new EV is expected to go on sale sometimes in 2012, but Toyota is yet to comment on the development of such a project.