Toyota Kirloskar Motors (TKM) is planning to launch a compact car within the next two to three years. The joint venture is hoping to bring out a series of models with engine capacities from 1.1 to 1.3l, to make their presence felt in the booming compact car bazaar in India. Once the heart of the car is ready, sedans on the same lines as the Dzire, Fiesta, and Verna are expected to roll out. The hatchbacks will take on the likes of the Swift and the Hyundai Getz.
The second plant being built next to the adjacent one in Bidadi in Karnataka will most likely take up the compact car initiative and will be ready by 2010. In full flow, it will be able to produce 63,000 vehicles a year. Even though Toyota has 89% stake in the joint venture, the Kirloskar Group from Pune is investing 1,400 crore in the new production facility. The Fortuner and a diesel Corolla being on the cards, it looks like an interesting near future for TKM, but in terms of the compact car production competition could be a lot more hostile than what has been illustrated earlier and two-three years seems more than a distant future the way this market is growing.
