Toyota Motors1

Prepared by:

Muhammad Shahnawaz

MPA(4th semester)

University of Agriculture Faisalabad

Toyota Motor Introduction

Toyota Motor Corporation is one of the world‘s leading automakers, offering a full range of models, from mini vehicles to large trucks. Global sales of its Toyota and Lexus brands, combined with those of Daihatsu and Hino, totaled 6.78 million units in CY2003*. Besides its own 12 plants and 11 manufacturing subsidiaries and affiliates in Japan, Toyota has 45 manufacturing companies in 26 countries/locations, which produce Lexus- and Toyota-brand vehicles and components. As of March 2003, Toyota employs 264,000 people worldwide (on a consolidated basis), and markets vehicles in more than 140 countries. Automotive business, including sales finance, accounts for more than 90% of the company's total sales, which came to a consolidated ¥16.05 trillion in the fiscal year to March 2003. Diversified operations include telecommunications, prefabricated housing and leisure boats.

America Europe Africa Asia

American Samoa India SaipanAustralia Indonesia SamoaBahrain Israel Saudi ArabiaBrunei Darussalam SingaporeChina Kiribati Solomon IslandsFiji Kuwait Sri LankaGuam Malaysia TahitiHong Kong, China Nepal Taiwan

New Caledonia ThailandNew Zealand TongaOman United Arab Emirates

Pakistan Vanuatu    Papua New Guinea Viet Nam    Philippines

Toyota International Portfolio

PassengerAvalon Camry Corolla Avensis

Tarago Prius Echo

SportsMR2 Camry Sportivo Corolla Sportivo Celica

4 W/DRav 4 LandCruiser Prado LandCruiser 100 Kluger

CommercialLandCruiser 78 Hiace Coaster Hilux

Town Ace

Toyota In Pakistan

Indus Motors

Indus Motor Company (IMC) is a joint venture between the House of Habib , Toyota Motor Corporation Japan (TMC) , and Toyota Tsusho Corporation Japan (TTC) for assembling, progressive manufacturing and marketing of Toyota vehicles in Pakistan since July 01, 1990. IMC is engaged in sole distributorship of Toyota and Daihatsu Motor Company Ltd. vehicles in Pakistan through its dealership network.

The company was incorporated in Pakistan as a public limited company in December 1989 and started commercial production in May 1993. The shares of company are quoted on the stock exchanges of Pakistan. Toyota Motor Corporation and Toyota Tsusho Corporation have 25 % stake in the company equity. The majority shareholder is the House of Habib with 50 % of the equity.

IMC's production facilities are located at Port Bin Qasim Industrial Zone near Karachi in an area measuring over 105 acres.Indus Motor company's plant is the only manufacturing site in the world where both Toyota and Daihatsu brands are being manufactured. Heavy investment was made to build its production facilities based on state of art technologies. To ensure highest level of productivity world-renowned Toyota Production Systems are implemented.

IMC's Product line includes 6 variants of the newly introduced Toyota Corolla, Toyota Hilux Single Cabin 4x2 and 2 versions of Daihatsu Cuore.

Quality Policy

WE AS A TEAM AT INDUS MOTOR ARE COMMITTED TO FOCUS ALL OUR ACTIVITIES LEADING TO:

MANUFACTURING HIGH QUALITY PRODUCTS. CUSTOMER SATISFACTION. SERVICE TO SOCIETY. MAINTAIN MARKET LEADERSHIP.

Environmental Policy

WE AS A TEAM AT INDUS MOTOR ARE COMMITTED TO CONTINUOUSLY IMPROVE OUR ENVIRONMENTAL MANAGEMENT SYSTEM TO:

IDENTIFY AND AVOID/MITIGATE THOSE ENVIRONMENTAL ASPECTS WHICH HAVE NEGATIVE ENVIRONMENTAL IMPACTS.

COMPLY WITH ALL APPLICABLE LEGAL, REGULATORY AND OTHER REQUIREMENTS.

ASSIST SOCIETY BY MAKING THE ENVIRONMENT MORE FRIENDLY.

OBJECTIVES OF THE COMPANY

To be the market leader and satisfy the requirements of its customers, the company has set certain objectives. These are:

1. Improve Quality2. Enhance Efficiency3. Minimize Cost4. Increase Productivity

Over the previous years, the company has put in its best efforts to manufacture quality cars designed for its customers. To improve their efficiency, the company gives great importance to its human resource as the company believes that satisfied and quality conscious team can produced quality products.

The company is using the philosophy of Kaizen for continuous improvement. It has become a way of life for the management of the company by doing these efforts towards their objectives.

Indus Motor Business Portfolio

BUSINESS PORTFOLIO:

“The collection of businesses and products that makeup the company. “

Business portfolio of Indus motors includes

Corolla

HiLux

Cuore

CBU Unit (completely built up unit)

Corolla, HiLux and cuore are manufacturing in Pakistan, 65% of the car manufactured in Pakistan which includes body and other parts except the engine which is being imported from Japan Known as CKD (completely knocked down) Engine.

Portfolio Analysis:

“A tool by which management identifies and evaluates the various businesses that makes up the company.”

Techniques or Tools for the Portfolio Analysis:

There are two different techniques used for the portfolio analysis:

Boston Consulting Group Matrix BCG Approach

General Electric Matrix GE Approach

The Boston Consulting Group Matrix (BCG Matrix) is the best-known portfolio planning framework. The GE / McKinsey Matrix is a later and more advanced form of the BCG. MatrixBCG matrix is a tool that can be used to determine what priorities should be given in the product portfolio of a business unit.

The GE / General Electric / McKinsey matrix is a model to perform a business portfolio analysis on the Strategic Business Units of a corporation.

TOYOTA COROLLA BCG MATRIX

STAR2.0D

2.0D Saloon

CASH COWSSE Saloon

GLi

QUESTION MARKXli 1.3

DOGS

The McKinsey / General Electric MatrixThe GE / McKinsey Matrix is more sophisticated than the BCG Matrix in three aspects:

 1. Market (Industry) attractiveness replaces market growth as the dimension of industry attractiveness. Market Attractiveness includes a broader range of factors other than just the market growth rate that can determine the attractiveness of an industry / market. Compare also: Porter's Five Competitive Forces model

2. Competitive strength replaces market share as the dimension by which the competitive position of each SBU is assessed. Competitive strength likewise includes a broader range of factors other than just the market share that can determine the competitive strength of a Strategic Business Unit.

3. Finally the GE / McKinsey Matrix works with a 3*3 grid, while the BCG Matrix has only 2*2. This also allows for more sophistication. 

Typical factors that affect Market Attractiveness: Typical factors that affect Competitive Strength of a

- Market size- Market growth rate- Market profitability - Pricing trends - Competitive intensity / rivalry - Overall risk of returns in the industry - Opportunity to differentiate products and services- Demand variability- Segmentation - Distribution structure 

Strategic Business Unit:

- Strength of assets and competencies- Relative brand strength- Market share- Market share growth- Customer loyalty- Relative cost position (cost structure compared with competitors)- Relative profit margins (compared to competitors)- Distribution strength and production capacity- Record of technological or other innovation- Access to financial and other investment resources 

GROWTH STRATEGIES

MARKET PENETRATION

PRODUCT DEVELOPMENT

MICRO AND MACRO ENVIRONMENTS

Macro Environment The larger societal forces that affect the microenvironment- demographic, economic, natural, technological, political, and cultural forces. These factors represent constraints within which all organizations including the automobile industry must function. The various components of general environment are:1. Political2. Economic3. Demographics4. Cultural5. Technological

1. Political FactorsGovernment at all levels is an important component of the general environment no organization or industry is immune from the various decisions made by the government. The Pakistan, Government’s in consistent policies, frequent change in duty tariff and smuggling are main reasons of unstable market conduction. Like other motor companies Toyota is also affected by the current changing policies of the government.

Previously the automobile industry had to cope with more than 77000 yellow cabs that were imported during the yellow cabs scheme and was later turned lose to the market after a change of government and the policy scrapped.

In 1995, all the previous taxes and duties were rolled into one import duty of 30 percent on CKD kits as well as CBU vehicles. In 1996 the sales tax on CBU was increased cost to 18 percent. In 1997 the ministry of industries and production recommended that duty on CKD be reduced form 40 percent to 35 percent while the car sales should be exempted from CVT and the deletion programme should be accelerated.

Just a few days back the general sales tax has been increased to 15 percent promoting more price like. So there is going to be a Rs.20000 increase in vehicles.

2. Economic ForcesGovernment economic policies at the federal level clearly influence the ability of the industries to survive and progress. Inflation is a major economic factor which has affected the Pakistan. Automobile industry including Toyota. The current inflation rate is 21% to 23% annually prices in the auto market were deregulated in 2000 and

grew almost 20 percent to 30 percent per annum to allow Toyota to bring their prices to profitable levels. After three years of “Still Market”, the market picked up. The recent increase of 15 percent sale tax is however, going to result in a price increase.

3. Demographics ForcesSociety holds a global or summary belief that an organization is proper and worthy of support. Toyota takes pride in being the most trusted name all over Pakistan. Its vehicles are regarded as a status symbol. It is the guiding principles of Toyota which has strongly developed trust in the people. 4. Cultural FactorsToyota respects the culture and customs of every nation and community and contributes to the economic and social development through corporate activities in the communities. Toyota believes in honouring the language and spirit of the law of every nation and undertake open and fair corporate activities to be a good corporate citizen of the world. This is the reason that Toyota is proud of the fact that Pakistani society considers Toyota vehicles to be a symbol of reliability, comfort, luxury and a have to be trusted.

5. Technological ForcesTechnology is of particular importance because it has been and continues to be the main source of increases in productivity. Despite changes in the means used to motivate people and the variety of incentives that have been offered to stimulated production, the resulting increase has been negligible when compared to that of created by technology.

The locally produced Toyota Corolla introduced in May 1993 is now in its 11 th

year. Its excellent quality, low maintenance cost and high resale value has won it the support and loyalty of its customers. Product diversification and a wide range of colours has allowed customers to exercise greater options and has sustained this threat. The total company’s product range comprises of 8 variants of Corolla and 5 variants Hilux. As a result of the “Safety First” commitment; for the first time in Pakistan SRS “Secondary Restrain System” Airbags have been introduced in the GLI Automatic and GLI manual models, side impact bars which protect vehicles for side collisions have however been routinely fitted in all Corolla variants since inception. The process of making a car more durable includes “Pitospaate Primer”, total immersion in a catholic Electro-deposit primer, which assures long term anti corrosion and an extra thick colour coat that is better than all others, ensuring that “New Car” look “New” for years to come.

MICRO ENVIRONMENT

The Micro environment consists of those components of the macro environment which are directly relevant to an individual’s organization. An organization’s micro environment includes1. Customers2. Suppliers3. Internal Public4. Competitors5. Intermediaries

The boundary between an organization’s Macro and Micro environment should not be viewed as static. Changes in the former will inevitably redefine the latter.

The various components of micro environment for Toyota have direct influence on its performance. Moreover components of Toyota’s micro environment are also related to its macro environment.

1. CUSTOMERSToyota aims at developing loyal customers relationship. For this reappoint tries its best to understand who its buyers are and what are their needs. It tries to listen to its customers, realizing that they may be their best collaborators. Customers feedback drive their product development.

To be the market leader and satisfy the requirements of its customers, the company has set certain objectives. These area) Improve Qualityb) Enhance Efficiencyc) Minimize Cost d) Increase Productivity

Over the previous years the company has put in its best efforts to manufacture quality cars designed for its customers. In Pakistan, more and more people want to experience the unique pleasure of motoring. Exhaustive, in-depth research and consumer surveys conducted over the past years revealed trends of customers and the environmental factors relating to use.

Toyota’s Marketing PolicyToyota’s slogan “Reliability n Motion” represents its emphasis son strong trustworthy and life-long automobiles. It has many brand loyal customers and is considered as market leader. In Pakistan, it has aimed at various segments with their variety of models in Toyota Corolla, so customers in every segments can be satisfied.

Different classes of Toyota Corolla introduced in Pakistan are;

Model Description Segments

SE Saloon 1600 cc Industrialists, Well established Businessman, Professionals.

GLi 1300cc Businessman, Top Level Mgt. of multinationals, Professionals, Government High Officials.

Xli 1300cc Middle-level Executives, Government Departments & Organizations, Professionals, Armed Forces.

2.0D / 2.0D Saloon Professionals, Business Executives who are fuel cost conscious.

Toyota has got an effective Nationwide dealer network comprising of 25 dealers at Karachi, Lahore, Faisalabad, Mirpur, Islamabad, Peshawar, Sialkot, DI Khan, Multan, Quetta and Larkana. This spread of network shows not how Toyota is sincerely busy in developing a company’s customer relationship and winning the hearts of brand loyal as well as attracting potential customers.

2. SUPPLIERSSuppliers constitute a second component in a typical organization’s micro environment. Toyota has to respond not only to the customers they supply, but also to the sources from which they receive supplies. Suppliers are given importance and respect by Toyota. It continuously aims at developing a strong relationship with its suppliers. This is done to ensure that Toyota suppliers provide quality materials which is the most important factor for Toyota vehicles.

Japan, is the major supplier of CBU or completely built up vehicles. Also CKD kits or completely Knocked down Kits are supplied from Japan. CKD kits mainly comprise of the engine of vehicles. The vehicles which are assembled in Pakistan comprise of 65% locally manufactured parts.

Toyota Indus aims for good relations with both the local and foreign suppliers. “To achieve maximum level of customer’s satisfaction” is Toyota’s mission. This can be proved by the fact that dealership is authorized to these selective people who offer 3 S’s. That is sales, services, spare parts. This is done to ensure convenience for its customers. They are offering the following services to cater to the needs of their customers:a) One year free servicing from any Toyota service center all over

Pakistan.b) Free checkup camps are set annually. c) Spare parts easily available all over Pakistan.d) The dealership network comprises of seventeen dealerships all

offering sales, services and spares. e) The customer retention department at the dealerships is also improved

and consolidated periodically.

The company believes on the fact that favorable supplier relations lead to improve quality, better shipping arrangements early warming of major price changes and

advance information about technological or marketplace developments. So, the aim is to develop friendly, professional relations with suppliers in which both will profit.

3. Internal PublicIt is the action, of employees by which a company’s objectives are accomplished. In order to achieve its goals and objectives Toyota makes sure that highly competent and skilled people are employed. Emphases is laid to ensure that the person being hired meet the criterion for the respective departments.

Training is an integral part in Toyota’s various departments. Training was intensified and various courses were conducted through the previous year. Technicians at the dealers’ service departments underwent extensive by IMC service departments to improve their skills. Moreover, periodic training of managers is also conducted. This include training camps, short course conducted in various well-known universities, training programs conducted abroad and lectures of foreign exports.

4. COMPETITORSMarket competition is the cornerstone of managerial capitalism. The five forces that shape the degree of market competition operating within an organization’s micro environment are

a) Rivalry among existing organization.b) Relative power of customers.c) Relative power of suppliers.d) Threat of new entrants.e) Threat of new substitutes.

Presently Toyota is proud to have the most market share. Honda stands second followed by Suzuki and Nissan. Since its start it was only in 95-96 that Honda managed to sale 200 more units of vehicles than Toyota. Still, Toyota is proud to be in a strong position. However to the spirit of competition is strong and this has lead Toyota to continuously try to improve itself, at all levels. Continuous emphasis is laid on to attract more customers, maintains healthy relations with its suppliers and makes efforts to improve technology. Careful strategic planning at al levels has enabled Toyota to achieve the highest market share and have an edge over other automobile companies.

5. Intermediaries

Banks, Leasing companies and car agents are some of the intermediaries for Toyota. These intermediaries basically giving the boost to the sales of Toyota, by offering the cars to the consumers, in easy installments and making the cars affordable for the customers to the higher extent.

SWOT ANALYSIS

In formulating sound strategic plans, an organization must assess its internal strengths and weaknesses in relation to the external opportunities and threats it faces. An effective strategy will take advantage of an organizations strengths and opportunities at the same time it minimizes or overcomes weaknesses and threats. Regular assessment and SWOT analysis is thus given importance.

Strengths

Competitive pricing.High market share.High durability.Easy availability of spare parts.Aerodynamic body shape.Elegant body features.Comfortable ride.Luxurious car interior.High goodwill.Prestigious car history.Good resale value.Swift distribution channels.Updated safety features (Air-bags, seat-belts, ABS braking,Safety beams etc.)

Low fuel consumption·As production of vehicle is based on foreign joint ventures ofJapanese origin, the product quality is of international standard. 

Weaknesses People often criticize the breaking of the car although thatbraking system of the car has been updated to ABS but still thebody rolls when the brakes are applied at high speed. The cheesy of the car is not stable while doing high-speed sharp turns. The body of the car is too heavy.The rims and tires of the car are not impressive.The cars steering is a bit light and the driver cannot feel the road.  

OpportunitiesMaking a sporty version of the car just like the CIVIC TYPE-R,this is the faster racing version of HONDA CIVIC having 200bhpand a sports body frame. Extra market can be captured by introducing Company fittedCNG Kitts in the car. 

ThreatsSwift competition from other manufacturers’ mainly Japaneseand Korean car-makers. High oil prices resulting in decrease in demand of fuel thirstysedans. But the fuel Consumption of Toyota Corolla is fairly decent. Global inflation due to increase in population and high oil pricesmay result in decrease in demand of sedans. Increase in demand of other cars may result in downward trendof the brands goodwill. Lower prices of Korean car manufacturers may be a threat inthe future. But presently Korean cars are not making a big impactin the market because of reliability and resale problems. Currently Pak Suzuki is posing a threat as Pak Suzuki isproducing cheap cars and is targeting the lower-middle andmiddle income group consumers. Permission given by the Government to the overseasPakistanis to import used cars in Pakistan. 

IFE MATRIX Major weakness (rating = 1), Minor weakness (rating = 2)

Minor strength (rating = 3), Major strength (rating = 4).

  Strengths Weight Rating Score1 Competitive pricing. 0.03 2 0.06

2 High market share. 0.07 4 0.28

3 High durability. 0.08 3 0.24

4 Easy availability of spare parts. 0.07 3 0.21

5 Aerodynamic body shape. 0.02 2 0.04

6 Elegant body features. 0.05 2 0.1

7 Comfortable ride. 0.03 4 0.12

8 Luxurious car interior. 0.09 3 0.27

9 High goodwill. 0.07 4 0.28

10 Prestigious car history. 0.06 3 0.18

11 Good resale value. 0.05 4 0.2

12 Swift distribution channels. 0.02 3 0.06

13Updated safety features (Air-bags, seat-belts, ABS braking, Safety beams etc.) 0.05 2 0.1

14 Low fuel consumption 0.05 3 0.15

15·As production of vehicle is based on foreign joint ventures of 0.05 2 0.1

 Japanese origin, the product quality is of international standard.      

  Weaknesses      

1 People often criticize the breaking of the car although that 0.07 3 0.21

 braking system of the car has been updated to ABS but still the      

  body rolls when the brakes are applied at high speed.      

2The cheesy of the car is not stable while doing high-speed sharp turns. 0.04 3 0.12

3 The body of the car is too heavy. 0.05 4 0.2

4 The rims and tires of the car are not impressive. 0.02 1 0.02

5The cars steering is a bit light and the driver cannot feel the road. 0.03 3 0.09

    1   3.03         

EFE MATRIX

1 = The response is poor. 2 = The response is below average. 3 = Above average. 4 == The response is Superior

  Opportunities Weight Rating Score1 Making a sporty version of the car just like the CIVIC TYPE-R, 0.15 3 0.45

  this is the faster racing version of HONDA CIVIC having 200bhp        and a sports body frame.               

2 Extra market can be captured by introducing Company fitted 0.2 4 0.8  CNG Kitts in the car.               

  Threats      1 Swift competition from other manufacturers’ mainly Japanese 0.08 3 0.24

  and Korean car-makers.               

2 High oil prices resulting in decrease in demand of fuel thirsty 0.09 3 0.27

 sedans. But the fuel Consumption of Toyota Corolla is fairly decent.      

         3 Global inflation due to increase in population and high oil prices 0.07 2 0.14

  may result in decrease in demand of sedans.               

4 Increase in demand of other cars may result in downward trend 0.06 2 0.12  of the brands goodwill.               

5 Lower prices of Korean car manufacturers may be a threat in 0.12 3 0.36  the future. But presently Korean cars are not making a big impact        in the market because of reliability and resale problems.               

6 Currently Pak Suzuki is posing a threat as Pak Suzuki is 0.16 2 0.32  producing cheap cars and is targeting the lower-middle and        middle income group consumers.               

7 Permission given by the Government to the overseas 0.07 3 0.21  Pakistanis to import used cars in Pakistan.      

    1   2.91

Competitive Profile Matrix

    TOYOTA   HONDA   Mitsubishi  Critical Success Factor Weight Rating Score Rating Score Rating Score

Advertising 0.2 3 0.6 4 0.8 1 0.2Product quality 0.1 4 0.4 3 0.3 2 0.2Price Competitiveness 0.1 4 0.4 3 0.3 3 0.3Management 0.1 3 0.3 2 0.2 2 0.2Financial position 0.12 4 0.48 3 0.36 3 0.36Customer Loyalty 0.1 4 0.4 3 0.3 2 0.2Global Experience 0.2 3 0.6 3 0.6 4 0.8Market share 0.08 3 0.24 2 0.16 1 0.08               

1 3.42 3.02 2.34

Competitors Situation

SUZUKI MOTORS :

Suzuki is the leading name in small commercial vehicles andpassenger cars. Suzuki commenced its operation by assemblingsmall 800 cc cars. Suzuki has been so far a sole leader in 800cc and1000cc passenger cars as well as 1000cc jeep Potohar. But theemergence of so many competitors in the market will definitely triggera very hard time to Pak Suzuki. Suzuki has launched Mehran 800cc,Cultus 1000cc, Baleno 1.3 & 1.6 Eli and Gxi, Bolan van & Ravi pickup800cc and Potohar jeep.Pak Suzuki’s sales during FY08 portrayed 31 per cent upsurge. Salesfigures of Pak Suzuki Motor’s during FY08 posted sanguine growth at31 per cent to 99,104 units compared to 75,720 units during FY07.On MoM(month to month) basis, sales figures increased by 3.9 percent to 11,247 units during June compared to 10,824 units in May2006. Pak Suzuki is the market leader in the 1000cc and lowersegment of cars with sales of Suzuki Mehran, Suzuki Alto and14Suzuki Cultus at 35,982 units, 16,823 units and 21,390 unitsrespectively. The company has replaced Suzuki Baleno with SuzukiLiana during the period and the product is getting acceptance in themarket. Sales figures of Suzuki Liana remained on the ascendingtrend with 1,535 units during June compared to 1,187 units in May.

Honda:Honda started its operation in Pakistan in 1994. Honda is enjoying itskey position in the segment of 1300 cc and above. Honda haslaunched many models like Civic 1.5 cc, City 1.3 cc to 1.5 cc etc. VTIbrand continued to be popular among customers.During FY08, Honda Atlas Cars’ sales soared by 17 per cent to28,134 units as against 24,066 units previously. Currently, HondaAtlas assembles only two vehicles namely Honda Civic and HondaCity to tap the upper-end segment of car market. On MoM basis,Honda City sales stood at 1,229 units in June, almost doublecompared to 626 units during the preceding month. Demand ofHonda Civic declined by 61 per cent to 341 units MoM.

Dewan Farooque Motors:It is the major competitor which has commenced its operation with awide range of products in domestic automobile market. DewanMotors is basically collaboration with Hyundai and Kia, two Koreanauto manufacturers. The initial response to Dewan's offering in themarket with record company booking of its Santro Plus. It haslaunched its Kia classic 1300 cc car with sophisticated features. Infuture wide range of models like Kia Shuma 1500-1800cc car, KiaSportage 2000 cc sports utility are expected to launch in the market.

Dewan has also launched its 1.5 tons Shehzore, the assembly ofHyundai light commercial vehicle has already started at the SindhEngineering Plant in Karachi under contractual agreement.Dewan's presence in the market will give the major move to the autoindustry in Pakistan. The intense competition will give the benefit tothe potential buyer in the market.Automobile sales figures of Dewan Farooque Motors’ has remainedstable on the back of increased demand of Hyundai Shahzore, whichis considered to be the most competitive vehicle in the LCV segment.15During FY08, Hyundai Shahzore’s sales stood at 9,234 units, 15 percent higher compared to 8,012 units previously. On the other hand,Hyundai Santro’s sales remained almost intact at 7,031 units duringFY08 as against 7,009 units last year due to intense competition fromsmall imported cars.

Daihatsu:Daihatsu, another new player in the market with its Cuore 850 cc,increased the competition in the market . Daihatsu and Indus Motorsigned an agreement to launch the Coure in market. The projectworth Rs 750 million was developed at Port Qasim between Daihatsuand Indus Motor to produce Coure. Daihatsu also heated up thecompetition in small car segments.

Suzuki for the first time faces competition in small car business. It isfor the first time that Daihatsu will produce its car in Toyota Plant inKarachi. The assembly plant of Daihatsu has the capacity to produce10,000 Cuore cars in the year. But the expected level of output infuture will be some about 5000 cars in the starting year of itsoperation.