Toyota Aims To Rescript The Glanza Chapter With Urban Cruiser

Avishek Banerjee Oct 01, 2020

Nearly a decade back, Toyota Kirloskar Motors (TKM) came up with the Etios Twins (sedan and a hatchback in the A segment) specifically for the domestic market. As both the products were nearing the last phase of their shelf lives, the company decided to sell badge-engineered models built by market leader Maruti Suzuki i.e. earlier Glanza and now Urban Cruiser. Earmarked specifically for the home market, both the models were rolled out to cater to millennials who have never owned a ‘Toyota’ brand.

While e-launching the Urban Cruiser, Naveen Soni, Senior Vice President, Sales and Service, TKM, said, “While the Glanza journey was very enriching and exciting, it definitely did help us in gaining insights into the new ‘carbuying segment’, which is the low-end of the market -B segment as they say. From that point of view, we have 30,000 happy customers who have experienced the Glanza. That helps in Managing customer expectations and going beyond that.” While speaking on the new offering, he added, “We are anticipating increased demand for SUVs in the coming months and years ahead. Just like the Glanza, Toyota Urban Cruiser will play an important role in catering to this demand particularly from first-time Toyota buyers who are brand conscious and want to experience an international brand.”

It is to be mentioned that the facelifted Maruti Suzuki Baleno is retailed by TKM as the Toyota Glanza, which was launched last year. Likewise, the facelifted Vitara Brezza is sold as the Urban Cruiser, which marked Toyota’s foray in the compact SUV segment in the country. The sub-four metre model will compete in a segment which has been witnessing robust sales growth despite a challenging business environment. Besides Vitara Brezza, the model would compete with the likes of Hyundai Venue, Tata Nexon, Ford EcoSport, Kia Sonet, etc. Available at a price range of ₹8.4-₹11.3 lakh (ex-showroom Delhi), the model delivers a fuel efficiency of 17.03 kmpl for manual transmission and 18.76 kmpl for automatic transmission.

When asked to share the sales target and marketshare of the new model, he maintained, “The only number that you know is being number in customer satisfaction. That is been our mantra in retaining our customers and growing with the family in an organic manner. This (SUV) segment is definitely important. What we are happy and proud is that we are presenting ourselves at the low end of the market where there are maximum volumes. This segment which was just 1% of the total market in 2013 has now grown to 14% even in a degrowing market. We are happy to present this car to buyers, including first time Toyota buyers who can experience the Toyota ownership.”

When asked if the company will come up with diesel versions of the aforementioned Maruti-sourced models, Soni maintained that everything will hinge on customer the

customers’ expectations. However, he also maintained, “Let me put this straight. Diesel is not going (away) anywhere from our portfolio. From Fuel Efficiency, customer preference points of view, I think diesel is the mainstay. But I think this will happen at the high end of the market. At the low end of the market, 75%+ customers were okay with petrol models.”

When asked if the company has medium to long term plans to roll out new products from its own facility, Tadashi Asazuma - Vice President, Sales and Marketing, Toyota Kirloskar Motor affirmed, “Of course, we are a car manufacturer and ‘Toyota’ as a brand. We have such plans in the future, sooner or later, and will try to reinforce our products and brand itself. “Seconding his thoughts, Soni added, “This partnership between the two is very unique because it provides competitiveness to each other and strengthens the competitiveness of each other by being present in the segment we are not present it. As it unfolds, you will see more and more cars coming. The final combination will be what the customer benefits, whether it is what the alliance has to offer or what Toyota can offer (on its own).”

Meanwhile, Toyota has recently announced that it is investing over Rs 2,000 crore this year to gear itself up for manufacturing of components and subsystems of 'Electrified vehicles'' at its plant in Karnataka. Even though the existing capacity of 3 lakh units will not be ramped up, the company claims that the structure of manufacturing capability will be shifting towards that new technology avenues.