Toyota enters fast growing mid-size SUV with Urban Cruiser Hyryder to challenge Hyundai Creta and Kia Seltos

The vehicle is set to hit the roads in the upcoming festive season, which is the beginning of a new phase of product launches planned by Toyota Kirloskar to have a much bigger footprint in the market.

With plans of more frequent product introduction, Toyota has committed over $750 million (approx. Rs 4800 crore by Toyota and Rs 1200 crore by vendors) in the country which will go towards cleaner and safer vehicles with hybrid technology at its core. The company claims its Hyryder is amongst the safest and the most fuel efficient in the marketplace. The vehicle will come with a 90% localisation content.

Toyota , Vice Chairman, Vikram Kirloskar told ET, Toyota is now more cost competitive and nimble and plans to be a lot more active on product.

“Our short to mid term plan is to utilise our capacity completely (3 lakh units). The new products will help us grow our presence,” said Kirloskar

The vehicle will be powered by a 1.5 litre TNGA petrol engine and supplemented by a 1.8 kW battery, delivering over 40-50% more fuel economy when compared to the conventional petrol vehicles. Toyota claims the hybrid vehicle operates in an electric mode for 50% of the ride and hence it delivers superior fuel efficiency. The vehicle will also come with an option of 1.5 litre K Series engine from its alliance partner Suzuki’s Indian subsidiary

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At present, Korean companies dominate the mid-size SUV space in India, with best-sellers Hyundai Creta and Kia Seltos.

While Toyota has presence in the entry SUV market with the Urban Cruiser (sold as Brezza by Maruti Suzuki) sourced from alliance partner Suzuki, the company has no product in the midsize SUV segment, which has grown to be the third largest segment in the passenger vehicle market in the country in the past few years.

The midsize SUV space currently accounts for nearly a fifth of all PVs sold in India.

Toyota will invest Rs 4800 crore to introduce green technologies to the Indian market by the end of the ongoing calendar year to help realise the government’s objective to curb crude imports and vehicular emissions.

The first of these vehicles – Toyota Urban Cruiser Hyryder – has localisation content of over 90% to keep prices competitive.

“At present, the only hybrids we make are pretty large cars. As the newer generation cars come in, the mass market, we would request the government for a proportionate reduction in taxes in line with the carbon reduction of these vehicles,” he said.

TKM currently assembles the Camry hybrid premium sedan in India, and luxury hybrids under the Lexus badge.

On hybrids, India currently levies GST of 28% on small vehicles (of under four metres) and 43% on larger ones.

Kirloskar said the vehicle architecture on the electrified vehicles – whether the hybrid, plug-in hybrid, or electric – is essentially the same.

Kirloskar said, “The core technology is the same. Hybrids will help accelerate the move towards electric. At present, the electricity generated in the country is largely fossil-fuel based. Once the energy mix changes, we will bring other technologies also to the market.”