Toyota mulls mini car to rival Mirage

MANILA, Philippines - Toyota Motors Philippines Inc. is eyeing the fast-growing small car segment as it aims to capitalize on a growing middle class as well as further strengthen its presence in the personal vehicle segment.

GT Capital Holdings Inc. president Carmelo Bautista said the group’s automotive unit is looking to introduce models smaller than its compact sedan, Vios, given the rising preference for vehicles with engine size of 1-1.2 liters and a price point of half a million pesos.

“We’re studying it.  That would be a perfect entry point for a first-time buyer… But we want to know if this is a long-term opportunity and not just a flash in the pan,” he said.

Bautista said the local automotive industry has been benefiting from a robust domestic economy, steady remittance flows from overseas Filipinos and favorable car financing schemes.

He noted that the motorization phase for the Philippines has just started and sees Toyota getting a substantial chunk of industry sales.

Car manufacturers registered an 11 percent rise in sales to 156,649 units last year from 141,170 units in 2011. Toyota was the top automobile maker, accounting for a 42 percent share.

The small car segment has created sensation in the automotive market especially with the launch of Mitsubishi’s Mirage.  Customers are turning to smaller cars given high fuel costs, parking concerns and traffic woes.

Other models in this category include Suzuki’s Alto and Celerio and Kia’s Rio and Picanto.

Bautista said Toyota is looking to sell 70,000 units this year, higher than the 2012 figure.