Toyota shifts to smaller vehicles

The removal of the fuel subsidy, coupled with an increase in motor vehicle tax, has forced a leading car manufacturer to focus on smaller, fuel-efficient vehicles.

Toyota T&T Ltd president Shigeru Ito said at the media launch of the 2018 Yaris at the company’s South Park compound, San Fernando on Saturday, the shift to smaller vehicles had been made after last year’s budget presentation in which a number of new revenue-generating initiatives had been announced.

“Fuel subsidy has been removed and, in our automotive sector, motor vehicle tax and customs duty has been increased by 25 per cent for the passenger car with engine capacity exceeding 1599cc and not exceeding 1999cc,” Ito said.

“With the pressure of the forex reserve, the message to our industry was clear in shifting to smaller and more fuel-efficient vehicles.”

Ito said smaller passenger cars represented a growing segment locally and Toyota would move to introduce other models to satisfy this market segment.

Meanwhile, national sales manager Bari Khan said the 2018 Yaris was a compact vehicle while having the feel of larger more luxurious vehicles.