Toyota Motor Corp. announced the launch of its new Ractis compact Monday with a view to increasing its slumping share of the domestic automobile market.
"So far this year, (our domestic market share) has been under the previous year's level," Toyota President Katsuaki Watanabe told a news conference in Tokyo. "With the new Ractis, we hope to win back that share."
Toyota's piece of the domestic market excluding minicars in August stood at 40.2 percent, down 2.6 points on a year-on-year basis.
Although annual car sales in Japan -- excluding minivehicles with engine displacement of up to 660cc -- have leveled off at about 3.5 million units the past few years, the compact car market has been expanding.
Watanabe said the world's second-largest automaker expects this segment to account for some 30 percent of total sales this year, compared with about 20 percent in 2000.
The Ractis, powered by either a 1.3- or 1.5-liter engine, boasts a roomy interior thanks to its wider track and low floor height. The 1.5-liter model comes standard with leather handle fittings -- something Toyota said is unusual for a compact car.
Prices for the Ractis will range from 1.39 million yen to 1.87 million yen, and Toyota is targeting monthly sales of 7,000 units.