Toyota looks to gain momentum in India with low-cost Etios

In the first seven months of sales for the Etios sedan, the world's biggest automaker received 37,000 orders, compared with a target for that period of 30,000, Toshihiro Takeda, manager of Toyota's India product planning group, said on Tuesday.

The Etios Liva hatchback racked up 1,400 orders in the first four days since its debut on June 27, versus an expected 1,000, he told reporters at a test-drive event for journalists and analysts in eastern Japan.

Starting at 390,000 rupees ($8,770) for the lowest-grade Liva model, the Etios is the cheapest offering in Toyota's global line-up but serves as a crucial test for taking on Brazil and other emerging markets key to future growth for global automakers. Rivals such as Volkswagen , General Motors and Nissan Motor are all lining up entry-level cars for Brazil and India, now the world's fourth- and sixth-biggest car markets.

"We started with India because it's the most competitive market, with the cheapest cars," Etios chief engineer Yoshinori Noritake said. "We figured that if we could make it here, we could make it in other emerging markets." Toyota is scheduled to begin producing a compact car with Etios' underpinnings in Brazil from the second half of 2012.

TOYOTA ETIOS: A PEEK INSIDE