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Toyota enters voluminous compact car segment with Etios Liva launch. Even though entry level
pricing is attractive and lower than Maruti Swift, but on like to like features, it is similarly priced.
We feel competition in compact car to peak-out in coming quarters with GM Beat diesel and
Honda compact car launch.
Toyota launches much awaited Etios Liva with attractive entry level pricing
Toyota launched its first compact car in India, Etios Liva yesterday. The product designed
exclusively for Indian markets to qualify for lower excise duty (for less than 4 meter cars 10%
excise duty as compared to 20=% for rest) is looked-up as key volume driver for Toyota India.
Toyota plans an ambitious 100,000 Etios (sedan and compact combined) for CY12F vs.
60,000 in CY11F. This will be like doubling of its total sales volume in a years time with help
of Etios and its variants. It also plans to install engine making facility for Liva in CY12F and
gearbox making facility in CY13F with capacity of 250,000 per annum, so as to improve
localisation.
Toyota currently has 150 dealers spread across 68 cities, which it plans to increase to 175 by
end of CY11F.
Matches Maruti on pricing at lower end but top end variant priced at premium.
The 80BHP engine Liva compares equally against Maruti's Swift. In terms of power its
marginally lower (Liva 80 BHP vs Swift 85 BHP), but in terms of wheelbase and interior space
Liva scores an edge (due to better wheelbase inspite of similar external dimensions).
The Liva entry level car is priced at Rs.3.99 lakh vs Swift price of Rs.4.07 Lakh. But Liva entry
level car not having power steering feature, makes it unattractive as compared to Swift entry
level car. Hence on like to like features, Liva is priced equally to Swift.
The top-end Liva seems to be 10% costly as compared to Swift.
Maruti - competition to peak soon
Toyota aggressive pricing of Liva will give tough competition for Maruti in top-50 cities. But
considering limited capacity of Toyota in CY11F, we feel the actual impact on Maruti will be
only in CY12F.
For Maruti, Swift forms 12% of its total domestic sales volume. But, assuming 60% of its Swift
volumes coming from diesel variant and are being untouched by competition and selling on
waiting period, the competition impact on Maruti will be limited.
Maruti with expected new Swift launch in coming months, stands good chance to fight out
competition from Toyota. Further, its expanded new capacity coming on stream in 2HFY12F
to support diesel variants will give it additional ammunition to clear long waiting periods in
those variants.
We feel competition in compact cars to peak soon as General Motors Beat diesel variants and
Honda small car Brio launch are planned in coming quarters.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Toyota enters voluminous compact car segment with Etios Liva launch. Even though entry level
pricing is attractive and lower than Maruti Swift, but on like to like features, it is similarly priced.
We feel competition in compact car to peak-out in coming quarters with GM Beat diesel and
Honda compact car launch.
Toyota launches much awaited Etios Liva with attractive entry level pricing
Toyota launched its first compact car in India, Etios Liva yesterday. The product designed
exclusively for Indian markets to qualify for lower excise duty (for less than 4 meter cars 10%
excise duty as compared to 20=% for rest) is looked-up as key volume driver for Toyota India.
Toyota plans an ambitious 100,000 Etios (sedan and compact combined) for CY12F vs.
60,000 in CY11F. This will be like doubling of its total sales volume in a years time with help
of Etios and its variants. It also plans to install engine making facility for Liva in CY12F and
gearbox making facility in CY13F with capacity of 250,000 per annum, so as to improve
localisation.
Toyota currently has 150 dealers spread across 68 cities, which it plans to increase to 175 by
end of CY11F.
Matches Maruti on pricing at lower end but top end variant priced at premium.
The 80BHP engine Liva compares equally against Maruti's Swift. In terms of power its
marginally lower (Liva 80 BHP vs Swift 85 BHP), but in terms of wheelbase and interior space
Liva scores an edge (due to better wheelbase inspite of similar external dimensions).
The Liva entry level car is priced at Rs.3.99 lakh vs Swift price of Rs.4.07 Lakh. But Liva entry
level car not having power steering feature, makes it unattractive as compared to Swift entry
level car. Hence on like to like features, Liva is priced equally to Swift.
The top-end Liva seems to be 10% costly as compared to Swift.
Maruti - competition to peak soon
Toyota aggressive pricing of Liva will give tough competition for Maruti in top-50 cities. But
considering limited capacity of Toyota in CY11F, we feel the actual impact on Maruti will be
only in CY12F.
For Maruti, Swift forms 12% of its total domestic sales volume. But, assuming 60% of its Swift
volumes coming from diesel variant and are being untouched by competition and selling on
waiting period, the competition impact on Maruti will be limited.
Maruti with expected new Swift launch in coming months, stands good chance to fight out
competition from Toyota. Further, its expanded new capacity coming on stream in 2HFY12F
to support diesel variants will give it additional ammunition to clear long waiting periods in
those variants.
We feel competition in compact cars to peak soon as General Motors Beat diesel variants and
Honda small car Brio launch are planned in coming quarters.
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