Toyota to launch sixth Corolla variant

Launched in 2003, the model sells 700-800 units a month

Toyota Kirloskar Motor is launching a new variant of its premium sedan, the Corolla on September 23. The 1.8 litre Corolla, a leader in the premium sedan market, is believed to have undergone a facelift.

Although a company spokesperson refused to discuss the new variant, market sources expect the reworked Corolla to be launched without a change in the pricing, which now ranges between Rs 9.78 lakh and Rs 11.23 lakh (ex-showroom, Delhi) for its five variants.

The current version of the Corolla is being sold at a discount of Rs 1.1 lakh, of which Rs 60,000 comes as dealer discount, Rs 40,000 as finance discount (assuming a loan component of Rs 8,00,000) and Rs 10,000 as the waiver of the first year insurance premium.

Launched in 2003, the Corolla sells 700-800 units a month. Its direct competition comes from the Skoda Octavia (500 units a month), Hyundai's Elantra (about 200 a month) and the Chevrolet Optra from General Motors.

Although Optra the mother brand sells about 600 vehicles a month, an estimated 80 per cent of it is of the 1.6 litre version and only 20 per cent of the 1.8 litre version.

The premium sedan segment has not reported very impressive numbers since the beginning of this financial year.

However, analysts said that despite a decline of 20-25 per cent during the first five months of this financial year, the year could close with an overall growth of 5-6 per cent.

The total volume in this segment is about 2,400 units a month.

Businessmen are its primary buyers, with a small portion of the sales coming from corporate purchases.

The poor performance of this segment, though not restricted to any particular model, has been due to the overall slow down in the passenger car sales in the country in the last three months.

However, with August sales showing signs of recovery, the premium sedan segment is also expected to recover during the remaining of the financial year with festive sales giving it a push.