But Toyota Motor Corp. Executive Vice President Yukitoshi Funo said Friday the company won't even try to compete in super cheap models that are plentiful in developing nations.
He told reporters Asia is a "second motherland" for Toyota, where it will boost research and development as well as production of auto parts. Toyota Motor Corp. already sells more than 3 million vehicles a year in emerging markets, making up 45 percent of its global sales of 7.1 million vehicles. Japan's top automaker is aiming to add another million vehicles in annual sales from emerging markets with eight models, starting with the Etios sedan that went on sale in India in 2010. On Friday, Toyota said it had reached a "milestone" of 100,000 cumulative sales of Etios cars, which are all made in India. Toyota built its reputation with fuel-efficient small cars. And the demand for affordable compacts could prove a boon for Toyota. The compacts in the works will be smaller than the Corolla, and likely sell for about 1 million yen ($12,000). Toyota said it won't try to compete with models going for half that price.