Interview: Hiroshi Nakagawa, Managing Director, Toyota Kirloskar Motor

ZW: Toyota has been present in India for quite some time now, however it is only after the premium segment has reached such volumes that you finally decided to step into this segment. Do you feel this arrival is too late, especially when you had a chance to make an earlier entry?

Nakagawa: Our strategy in India has been outlined since our inception. Apart from setting up our manufacturing facility, we also looked at developing the industry. Our suppliers, dealers, basically the entire value chain had to be according to our standards. It is a long term commitment and a slower approach, however now you should see us taking on a more aggressive role.

ZW: Does the LIVA have any global potential or is it going to be a product isolated to the Indian market?

Nakagawa: Our first task with the Etios and LIVA is to establish the products in India. Right now we have no plans on exporting the models, however in the future, once we are able to sustain the demand in India, we might look at export potential.

ZW: What were some of the challenges that Toyota faced in manufacturing a small car yet keeping Toyota’s dedication towards quality intact? How was this achieved?

Nakagawa: The Etios sedan and LIVA hatchback share the same build concept. We looked at innovative manners to reduce cost, without cutting back on quality. On a lot of components we worked at making unified parts. For example, the exhaust system is a single piece, unlike other cars which comprise of 2 to 3 components connected together.  By simplifying parts, we were able to keep cost in check yet retain a high quality level.

ZW: Does Toyota intend on offering a diesel option on the LIVA?

Nakagawa: A diesel engine is ready, tried and tested, however we do not have immediate plans on introducing it. According to us, if the average distance covered by a car per month is around 2000 kilometers, then it makes sense to only have a petrol engine. We believe our 1.2 litre petrol engine (Read : Engine and Transmission) is ideal to cater to the requirements of LIVA customers. Diesels make sense for people who drive a lot more than 2000 kilometers per month. Regardless, we will wait and study the market further and if we then feel that a diesel variant of the LIVA is required, we will consider introducing it then. As of now, the LIVA will be offered only with a petrol engine.

ZW: What according to you, are the highlights of the LIVA keeping in mind the competition?

Nakagawa: The total market share of the small car segment is 35 % which is a considerable figure. The LIVA is focused on the basic requirements of every hatchback buyer in the country. With the Indian customer in mind, we have thrown in all the basic functionalities that should be there in a hatchback. Space, fuel efficiency and overall ergonomics which are the basic requirements have been fulfilled. However, if a customer looks for added features and functionalities that are there in other cars of the same segment, we have not pushed those in since the cost of the car would go higher. But, we have also not compromised on quality of safety or performance. When the Etios was conceived, we took the hatchback segment in mind and built a sedan which was effective, efficient and value for money.

To read more about how the new Etios Liva will fare against the existing competition click here (Read : Etios Liva Competition Check)