2. Toyota Motor Corporation is one of the largest manufacturer
automobile in the world. It is the subsidiary of Toyota group.
Toyota began its operations in 1933 as a division of the
Toyoda Automatic Loom Works Ltd now a subsidiary.
The headquarters of the company is located in Toyota city
In 1966, Toyota acquired Hino motor company which
manufactures buses and large trucks. The other company
acquired by Toyota during that period was Nippondenso
Company ltd, Daihitsu Motor Company ltd.
At present Toyota have many assembly plants and
distributors in various countries.
3. Toyota made it world’s second automobiles manufacturer over
taking Ford Motor Co
According to analyst US automaker have narrowed the quality
gap where as Toyota keeps on focusing the quality of the
products and this is the success for them.
According to the data published by CNN Money 2011, Toyota
ranks 10 in top 500 Fortune Company.
It generates an employment of 3, 25,905 people
The revenue generated during the financial year 2010-2011
were $ 235,364.0 million and the profit earned during that
period was $ 3,591.3 million. (Money.cnn.com)
5. Full Hybrid System comprises of an engine which is supported by an electric
motor which works in tandem to create a greater efficiency than a normal
petrol/ diesel engine.
It reduces the fuel consumption as well as emissions while providing the
necessary power to the car.
This system uses dual source of power through electric motor and petrol
engine, further it generates electricity while running on electric motors.
The car can be started either through the electric motors, or by using both
electric motor and petrol engine depending on the driving condition.
The generator helps in charging the battery while the car is running.
6. Battery – The battery is light weight. The high power of output nickel metal
hydride provides high power output in relation to its weight. The hybrid
system maintains the battery charge by monitoring the acceleration.
7. Engine – It’s a 1.8L 2ZR-FRE engine.
Maximum power output: 73kw (99ps)/5,200 rpm.
Maximum Torque: 142Nm (14.5kgf-m)/4,000 rpm.
8. Electric Motor – Max output: 60kw (82PS).
Max Torque: 207N.m (21.1kgf-m)
9. Power Split Device : It distributes the power produced by the engine to the
drive train and to the generator. The power is distributed efficiently by using
the planetary carrier which consists of a ring gear, sun gear, pinion gear and
a planetary gear.
10. Regenerative Braking: The Hybrid system reuses the kinetic energy to
generate electricity with the help of the electric motor. This helps in
increasing the fuel efficiency.
11. Generator: High output electric motor and engine is used to enhance the
acceleration while driving from low to high speed.
12. Power Control Unit: This system consists of an inverter, voltage- boosting
converter and an AC/DC converter to run the car on the motor. The inverter
converts DC supplied by battery to AC which is used in the generator.
13. Reduction Gear: It reduces the high rpm of the front motors which
is then transferred to the wheels which increases the torque
amplification. Therefore having a smooth acceleration while driving.
14. It is an established brand in India with an experience of over 16
years in Indian market. Toyota is trusted for its quality.
Toyota has an experience of selling hybrid cars across the globe
which will help them in marketing their product in the right way.
It is a Fortune 500 company ranked 10.
It’s a leader in hybrid car segment across the globe.
It has huge capital reserves which can be used to invest in hybrid
technology in India to cut down import duty which increases the cost
of the vehicle. And the Infrastructure of Toyota in India is quite
15. Being a new technology, its acceptance demands time and heavy marketing.
Hybrid technology is new in India, Investment is high which increases the
Competitors like Honda, Tesla are a major threat to Toyota as FDI has been
given the clean chit from the government.
FDI norms could allow easy entry to many international players.
16. Increase in fuel prices on everyday basis.
Changing customer preference and needs.
Increasing awareness and need for eco friendly products.
No successful competitor in hybrid segment.
Government subsidy and tax benefits in setting up a hybrid
technology plant in India.
First mover advantage as hybrid car segment is still in its nascent
17. Indian government has taken steps to invest and develop hybrid vehicles
Indian ministry has planning to invest Rs.13000-14000 crores to
establish a research and development centers.
The ministry has also announced that they will provide subsidiary of Rs.
1.5 lakhs on the hybrid cars on the ex-factory price of the car which will
help in reducing the cost price of the car. (livemint.com)
Govt. announced reducing the duty fee on import materials of cars.
Indian government also announced to promote the manufacturing of
hybrids cars in India the ministry will provide concession on excise duty.
18. Constant rise in GDP from last five years has led to increase in the
purchasing power and changes in the needs and life style of people
and hence the growth in the automotive sector is evident.
The fuel prices are constantly increasing in India. Further there is a
very less difference between the price of petrol and diesel. It has led
to dissatisfaction among diesel consumers who are paying more
while buying the car.
About 29 per cent of India is in the urban areas. This is expected to
go to 45 per cent by 2030. (kannan. Swetha, 2011)
19. With the advancement of new and innovative technology, hybrid can
be the preferred option.
Indian government and many other foreign companies are investing
in hybrid technology.
Fuel efficiency also plays a big role in capturing the Indian market
share which is the USP of the hybrid technology.
20. People think more about their prestige and image rather than
environment friendly while buying a car.
The Global Habit Survey’ which was conducted in 34 major cities in Asia,
Europe and other United States consumers has shown interest in eco
Hybrid cars would protect the environment and reduces the dependence
of fossil fuel. It is estimated that the sale of about 6-7 million units of
electric vehicles will led to save of about 2.2.-2.5 million tone of fossils
fuel consumption. (economywatch.com)
21. Idea Generation:
Increasing gasoline requirements, the prices of petrol, diesel as well as CNG are
getting higher. This gives an opportunity and space for hybrid car market in India in
To control the pollution in the environment.
Hybrid market is at its nascent stage. To have the first mover advantage over the
It is estimated that there will be approx 4-5 million more cars in next few years
compared to 1.5 million cars today. As the penetration level in India is very low, there
is a tune of 8 cars against 1000 people where china has tune of 50 cars against
1000 person. (Seth.Yogima, 2009)
Toyota has the experience and the technology which can be used to exploit the
hybrid market in India which is at a nascent stage.
Disruptive Innovation is the need of the hour, which is to create a new segment all
together and exploit it.
There is a need for an executive level sedan which has luxury as well as fuel
22. Idea Generation
Sales of Executive Level Sedans
Further only 6 units of Toyota Prius were sold during September 2012 to February
The executive level sedans are more or less priced between Rs.11 lakhs to Rs.15
Their fuel efficiency is quite low as engine size big. The fuel efficiency varies from
9 to 15 km/litre.
Therefore there is a need for a car that provides luxury as well as fuel efficiency.
Therefore Hybrid technology is the need of the hour.
Model (petrol/diesel) Sales from September 2012-February 2013
Honda Civic 323 units
Toyota Corolla Altis 1863 units
Chevrolet Cruze 1716 units
Volkswagen Jetta 1345 units
Hyundai Elantra 3348 units
23. Idea Screening
Option 1- Manufacturing the Prius locally and relaunch it with a lower
Option 2- Manufacturing a new car with a new design, hybrid
technology and new features.
Option 3- Using Incremental Innovation where Toyota Corolla Altis
design will be used with the hybrid engine 1.8-litre (2ZR-FXE) made for
the new prius. (Toyota)
24. Concept Testing & Developing
As we know Indians are the most difficult customers to satisfy,
as they are very price sensitive in nature.
Further they want every feature in the car but at competitive
Indians customers are risk averse in nature. Therefore
acceptance of a product which is new in the market takes
some time, till they are totally convinced about the product.
25. Business Analysis
Cost: The main objective is to build a car which is prized between Rs.11lakhs to
Rs.15 lakhs which will be placed in the executive level segment.
By using the same platform of Corolla Altis will provide us not investing in
designing the car from the start.
Further the new hybrid engine 1.8-litre (2ZR-FXE) will be used in this new car
which will also reduce the research and development on the new engine.
Demand Projections: Total sale of executive sedan market comprises of 20,000
cars per year growing at 5%.
Therefore our objective will be to capture 1% of the market by selling 200 cars.
Required Investment: Toyota is an established brand in India. Toyota being the
no 1 company in the automobile sector in the world has the capital muscle to
invest and take such a risk.
Competition: Hybrid technology is in its nascent stage; hence the competition in
Indian market is not that stiff. Toyota could fetch the first mover advantage. In
Profitability: The main aim is to sell 200 units of our car and get the acceptance
by the Indian customers. Initially profits do not matter.
26. Product Development:
Toyota Corolla Altis Hybrid
Toyota corolla altis hybrid is the new hybrid car which is eco
friendly in nature. It is a combination of luxury and fuel efficiency
creating a newer market in itself.
Features of corolla Altis hybrid:
Transmission: Electrically Controlled Continuously Variable
Dimension & Weight:
Length x Width x Height (mm): 4540 x 1760 x 1480
Wheelbase (mm): 2600; Tread Front/Rear (mm): 1530/1535
Kerb Weight/Gvw (kg): 1180kg-1270kg / 1640kg-1670 kg
Fuel Tank: 55 litres ; Mileage: 25 km/litre
Performance: Total max Output (kw): 100
Chasis: Suspension: Front- Macpherson Struts
Rear- Torsion beam
Brakes type: Hydraulic with electronic control and regenerative
Front/Rear- Ventilated Disc/ Solid Disc
27. Min turning radius : 5.2 m
Tyres: 195/65 R15 Tubeless
Engine: 1.8-litre (2ZR-FXE)
Displacement (cc): 1797
Max output (kw/rpm): 73/5200
Max Torque: 142/4200
Motor type: Synchronous alternating current motor
Max Voltage (v): 650
Max Output (kw): 60
Max Torque(Nm): 207
Battery type: Sealed Ni-MH
Modules: 28 (201.6v)
Capacity (Ah): 6.5
Connection Method: Series
28. Test Marketing & Commercialization
It is a highly innovative product which is placed in the executive
sedan segment against Chevrolet Cruze, Honda Civic and Volkswagen
Jetta, Hyundai Elantra & Toyota Corolla.
It will be targeted to the early adopters and innovators.
The car will be available in all the dealers across the country. Initially
Delhi, Mumbai, Kolkata & Chennai will be crucial markets.
29. It is a highly innovative product which is placed in the executive sedan
segment against Chevrolet Cruze, Honda Civic and Volkswagen Jetta,
Hyundai Elantra & Toyota Corolla.
It will be targeted to the early adopters and innovators.
The car will be available in all the dealers across the country.
Initially Delhi, Mumbai, Kolkata & Chennai will be crucial markets.
The Unique selling Proposition is its Hybrid technology which produces
25km/litre. It will be positioned to the early adopters and innovators
who want luxury and fuel efficiency with an aggressive price.
Marketing objective is to sell 200 units of Toyota corolla altis hybrid in
30. Hybrid technology is in its nascent stage; hence the competition in
Indian market is not that stiff. Toyota could fetch the first mover
advantage. In coming years well establish companies like Maruti
Suzuki is planning to come up with India’s smallest hybrid model in
INR 10 lakh bracket.(ibtimes.co.in)
TATA motors are planning to launch TATA Nano in support with
Bosch technology - start-stop system and with Norway based
Miljobil Grenland. (timesofindia.indiatimes.com)
PSA Peugeot Citroen is setting up a plant in Gujarat, India. They had
two joint ventures in china. They would come up with diesel-electric
hybrid cars in 2014. (Darji, 2011)
Electric car Reva group was taken over by Mahindra & Mahindra
group. So, Mahindra is working towards launching hybrid car in
coming years. (timesofindia.indiatimes.com).
31. Product Mix
It is placed in the executive sedan segment. The car boasts of the
unique hybrid technology which increases the mileage with a unique
design and trusted Japanese engineering. It’s also eco friendly in
nature. The fuel mileage of the car is 25km/litre.
Toyota Corolla Altis Hybrid will be prized around Rs.12.5 Lakhs to
place it in the executive sedan segment. The cost of the car will be
reduced due to the local manufacturing of it.
The car will be sold across the country with its strong dealership
network of Toyota through 173 dealers. The car would be
manufactured at Toyota’s manufacturing unit in Bangalore.
32. Print media will be used extensively to evaluate the response of the
A celebrity like Aamir Khan who has the image of a normal, sensible guy
would be made the brand ambassador for the car to create the buzz.
Toyota’s Greenathon campaign will be used to promote our eco friendly
Extensively marketed at various auto shows and expos to give an insight
about the car which will help in creating the buzz.
It should focus on comparative analysis advertisements which will give a
fair idea to the customers about the product.
Social media should be used to create awareness among the customers.
33. Fuel efficiency is the utmost criteria for any vehicle due to constant
increase in fuel prices. Further our fossil reserves are going down
and with this consumption; there is a high possibility of no fuel in
the future. In India 75% of the fuel is imported, therefore fuel prices
will always fluctuate. Hybrid technology is the future. Toyota is the
leader in hybrid car segment; hence it has the expertise in exploiting
the market as it is well established in India. By launching Toyota
Corolla Altis Hybrid, Toyota can exploit the market and have the first