Initial products to be assembled from kits on the 100,000-unit-capacity line are 5- and 7-seat SUVs being developed jointly by Tata and its Jaguar and Land Rover subsidiaries. Codenamed Q501 and Q502, the vehicles are due on the market in 2017.
With Indian sales having risen 12.9% year-over-year through May, according to WardsAuto data, VW is investing in production capacity and local sourcing with an eye toward expanding the domestic market.
The Creta and S-Cross join a segment whose top sellers currently are the Mahindra Scorpio and Ford EcoSport. Other compact SUVs on the Indian market include the Renault Duster, Nissan Terrano and Mazda CX-3.
The alliance introduced its CFA architecture in 2013 with the all-new ’14 Nissan Rogue CUV. It and other CFA models are sold in developed markets, but CMF-A designates affordable vehicles destined for emerging markets such as India.
Naomi Ishii wants Toyota to address challenges facing India. This includes improving fuel economy and reducing both pollution and road fatalities. The assumption is that an automaker helping solve these problems will increase sales.
Hyundai had a 21.2% share of India’s car market in the year’s first three months, but its lack of light trucks left its share of total light-vehicle sales at 13.7%. New utility vehicles are meant to raise overall market share to 20% by 2020.
GMI’s shrinking market share and capacity utilization caught the attention of parent company CEO Mary Barra, who visited India in September to assess the affiliate’s options. She conceded GM did not have the right focus.