Toyota Reboots Strategy, Doubles Down On Its Hybrid Bet In India

Toyota Reboots Strategy and Doubles Down on Its India Hybrid Bet

Toyota will be re-launching its India strategy. It is betting that the emerging markets will fall in love with its hybrids, so long as it is affordable.

Although the Japanese carmaker is known for their pioneering Prius sedan, they have struggled to sell large volumes of hybrid Camry sedans in India since 2013. Partly because the Camry’s sticker price was eight times that of an Indian family with a median annual income.

Toyota intends to make it different this time with cheaper hybrids. Four industry and company executives as well as suppliers provided previously unseen details on Toyota’s pricing, sourcing and production strategies.

This strategy focuses on reducing the cost of fully hybrid powertrains, which are made in India. The automaker’s plants there are already running at full capacity. It also aims to source important materials locally.

Toyota Motor also collaborates with Suzuki Motor (major owner of India’s most popular carmaker Maruti), to reap the benefits from their low-cost engineering expertise and mild hybrid technology.