The Toyota iQ is positioned as a premium-segment microcar, but the $5,000 version will be entry-level and only for emerging markets
In an effort to steal at least a bit of the spotlight from Tata, Toyota has announced that it too will launch a super-budget mini-car into the automotive market. Unlike the Nano however, Toyota's price mark is set at around $5000 and will probably not make it onto the market until 2015.
The budget mini-car probably won't face many of the unpredicted setbacks as the Tata Nano has suffered, but fluctuating prices on materials such as steel and plastics could be a future issue. The car is to be co-developed with Daihatsu and built in Bangalore, India where Toyota already has one plant, and another set to open in 2010.
Toyota's current micro-car, the iQ, requires a bigger wallet (though not by much) than the planned budget car, with prices predicted to hit below the $12,000 mark as set by the entry level Yaris if it does hit US shores under the Scion brand.
Tata's Nano famously promised to bring the opportunity of four-wheeled transport to the world's emerging markets - places such as India, Brazil and the African continent. Now Toyota is reported to be working on a similar car, though its initial price target is roughly double the Nano's originally intended price.+ Motor Authority: Report: Toyota working on $5,000 microcar for emerging markets
The news of Toyota's entry into the super-budget market comes from the Japanese Asahi newspaper, reports Automotive News Europe. To be co-developed with Daihatsu and built in Bangalore, India, the car won't make it to market until 2015. Toyota already has one plant in Bangalore, and is building another set to open in 2010.
Tata's car has faced setbacks, however, with the factory having to be relocated for political reasons and the rising costs of materials driving up the car's price. Toyota isn't likely to face exactly the same issues, though fluctuating commodities pricing on essential items like steel and plastic can quickly eat away at the tiny margins found in super-budget microcars.
Renault-Nissan is also among the contenders for the ultra-cheap tiny car market thanks to a cooperative agreement with Bajaj Auto. The Renault-Nissan car will more squarely target the Tata Nano, however, aiming for the same $2,500 price point. The companies hope to have the car to market by 2011.
The Toyota iQ, the company's latest submission to the microcar market, is targeted at more premium audiences in Europe and possible the U.S., with a UK price tag of £9,495 (approximately $16,140) for the entry-level version. Actual U.S. pricing, if the car does come under the Scion brand, will likely be below the $12,000 mark set by the entry-level Yaris.