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Toyota-Kirloskar 'corrects' Qualis tag by Rs 15,000

K Giriprakash

Toyota-Kirloskar Motor Ltd has effected a 'price correction' of around 2 per cent in its 'touch & try' Qualis model as part of its move towards bringing the price to its normal level.

"We plan to effect one more price correction before we bring the price to the normal level as our initial price was a special offer," Toyota-Kirloskar Motor Ltd deputy managing director K K Swamy said.

The price correction will increase the price of the model between Rs 12,000 and Rs 15,000. Swamy said the 'touch & try' model was being offered at a specially discounted price to promote the multi-purpose vehicle. Toyota has already increased the price of Qualis twice.

Qualis currently has a 40 per cent market share in the multi-purpose vehicle segment. In the entire passenger car segment, its share is 4 per cent.

Swamy said the sale of the first anniversary model was as per expectations and had so far sold around 1,000 vehicles.

The MPV manufacturer also plans to launch three new models which will be manufactured locally and import at least three more models over a period of 5-10 years.

The company has earmarked around $400 million for the second phase of its expansion which includes manufacture of three models in India. The company has invested around Rs 7 billion so far.

The models will be launched under two segments. One segment will consist of imported medium-sized vehicles (the built-up range of vehicles) which will have a 'reasonably local content' while another segment, called core segment will have a high local content.

The imported medium-sized vehicle will be assembled in the country. The core segment will have three range of vehicles consisting of small, multi-purpose and medium sized vehicles.

Industry analysts say that by 2005, India's passenger vehicle is expected to increase to around 1.5 million from the current level of around 700,000.

Yamazaki said the market had become extremely competitive and the next Exim policy was being viewed with lot of expectations to bring cheer to the industry.

Toyota Kirloskar Motor Company is a joint venture between Toyota Motor Corporation and the Kirloskar Group. It launched its first multi-purpose vehicles, Qualis, more than a year ago. The company expects to achieve localisation of 70 per cent within the stipulated time frame of five years.

At present, Toyota Motor Corporation has 88.86 per cent stake in its Indian joint venture, while its other partner, the Kirloskar Group has 11.14 per cent stake.

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