Recently it has been seen that Indian auto markets have been quite allured by the compact influence. Taking into consideration, the market prospective related to small utility vehicle and the existing players in this market such as Ertiga by Maruti Suzuki and Quanto as launched by Mahindra, Toyota may possibly come up with a bang in this segment giving the other MUVs a big competition.

The new attraction towards sedans and the most recent ones to SUV’s and MUV’s in the Indian Market is due to various reasons. There has been considerable increase in the diesel powered cars in the country. Therefore, these are most likely the reasons which have induced Toyota to enter in the compact utility segment as done by Maruti and Mahindra.

As far as the credibility of this Japanese automaker, Toyota is concerned; Innova can be taken as the reliable proof of that. Hence, there have been reports related to the probable launch of Avanza as a smaller version of Innova in India by 2013 which will be a compact utility vehicle. The same has already been introduced in the South –East countries like Thailand and Malaysia already.

This forthcoming Toyota Avanza might possibly be packed with 1495 cc engine as that of Thailand model. The 1.5 litre petrol engine churns around 109 PS of highest power at the rate of 6000 RPM along with the maximum torque of 141 Nm at 4400 RPM and a five speed manual transmission. Equipped with the VVTi technology for less carbon emissions and a better fuel efficiency, it is also expected to give a mileage of around 15.8 kmpl and 11.2 kmpl on highway. This car also promises a sport, stunning and spacious interiors and exteriors. Apart from that it is also set with most of the modern safety measures such as Supplementary Restraint System (SRS) airbag, side bar protection and crash body safety. Basically the USP of this car is its fuel efficiency and unparalleled headroom and legroom giving excellent accommodation to the whole family.

Moving on to the issue of price, nothing has been properly notified yet. It has been speculated that Toyota Avanza might turn out to be around 20-25% cheaper than Toyota Innova. No wonder it has been called as ‘Mini Innova’ fondly. It is estimated that this smaller version of Innova would drawn in the Indian Buyers which will give good returns to the company. In the continuation, it has been decided by the company authorities that Bangalore will be the venture for its manufacturing plant, hence investing around Rs. 900 crore to expand it. Such an investment would perhaps be a positive step for the production of Innova and Etios adding up another 100000 units to its present capacity of 210000 cars yearly. Further, there are possibilities that this Company in India, might plan a setting up of a diesel engine manufacturing plant. But at the same time, this particular option has been put to halt, as there have been concerns about the tax imposition on the diesel powered cars and the frequently changing price of diesel fuel in India.