Toyota Working on $5,000 Car Model

With lowered demand in most markets, Toyota plans a very cheap car that would be able to compete with low-cost models such as Nissan-Renault and Tata Motors. The new new model is likely to be priced at approximately $5,000, Autonews reported today citing the Japanese Asahi newspaper. Although Toyota, dubbed the largest car manufacturer in the world, did not confirm the speculations, the publication said that Toyota's low-cost model may arrive in 2015, with India and Brazil likely to represent the main targets.

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.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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