With the launch of a sedan and hatchback version of Etios, Toyota now plans to push the sales of both to increase its market share from 5% to 10% by the year 2015. The pricing of the new Etios Liva has made the car the cheapest premium hatchback in India. Following a top-down strategy, the company has ventured into the small car segment after the initial launches of sedans and SUVs. According to the Economic Times, industry watchers believe that Toyota’s strategy has forced its competitors to engage in manufacturing cost competitive cars for the Indian market.
The base price for Toyota’s Etios Liva hatchback is lower than the Maruti Suzuki Swift, the market leader in the segment. This has further intensified the competition since other car manufacturers also plan to launch cars that are designed especially for the Indian markets in terms of fuel efficiency and performance.