Toyota Aims to Slash Prices by 30% - TheStreet

NEW YORK (TheStreet) -- Toyota (TM) - Get Report intends to lower its car prices by 30% by 2013 to improve its competitive edge against rivals such as Hyundai , Honda (HMC) - Get Report and Volkswagen -- particularly in the fast-growing emerging markets, where smaller and cheaper cars are preferred, according to media reports.

China and India are among the emerging markets where Toyota wishes to boost its influence -- and it, like its competitors, is working hard to find ways to slash costs to accomplish this.

"Compared with Korean cars, our vehicles are roughly 30% more expensive globally," Takeshi Shirane, senior managing director of purchasing, told

Reuters

, in an interview on Friday.

"So what we've said is, let's work towards that goal."

"That goal" won't be easy to accomplish, given rising steel costs and the growing labor disruptions being faced by automakers in China, as workers demand higher wages.

In addition, Toyota still has its hands full with its massive recalls, and is focusing on regaining the public's trust in the company.

Recent efforts to that end have included aggressive customer incentives, which have helped the automaker boost its May sales, particularly at its Lexus division, though not by enough to surpass those of its major rivals.

-- Reported by Andrea Tse in New York

RELATED STORIES:

>>Top Ten Car Models: Photo Gallery

Get more stock ideas and investing advice on our sister site,

Stockpickr.com.

Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.