Toyota teams up with Suzuki to crack Indian hybrid market
First new model is compact SUV, peoplecarrier to follow
Toyota aims to lower costs by making components in India

BIDADI, India, Aug 22 Reuters Toyota is rebooting its strategy for India, doubling down on a bet that emerging markets will learn to love its hybrids, as long as the price is right.

Renowned for its pioneering Prius, the Japanese carmaker has struggled to sell large numbers of its hybrid Camry sedan since its Indian debut in 2013, partly due to a sticker price of more than eight times the annual income of a middleclass family.

This time, Toyota is determined to do it differently with lowercost hybrids, said four company and industry executives and suppliers who provided previously unreported details about the carmaker39;s sourcing, production and pricing strategy.

Central to the strategy is a drive to cut the cost of full hybrid powertrains by making them in India, where the automaker39;s factories are running well below capacity, and to source key materials within the country.

Toyota Motor is also leveraging its cooperation with partner Suzuki Motor, majority owner of India39;s biggest carmaker Maruti, to benefit from its lowcost engineering knowhow and mild hybrid technology.

The hybrid bet is a turning point. It will be a litmus test for Toyota39;s future and success in India, one person with direct knowledge of Toyota39;s plans told Reuters.

A full hybrid can be driven for stretches on…