This one has India written all over it. Peugeot and Toyota have confirmed that they together would engineer a new small car. The new car that the two manufacturers are working on is the 108 and we expect the car to be launched in 2013. The 108 is expected to replace the 107 hatch and would be closely related to the Citroën C1 and the Toyota Aygo. These cars would share the same chassis, engines and transmission but would be different to look to each other. The hatch would be made in the Czech Republic under an agreement with Peugeot, Toyota and Citroen.

The 108 will be available internationally as a 3 and 5 door and would be powered by a 1-litre, 3 cylinder petrol engine. The engine produces 68PS@6000rpm and is expected to accelerate to 100kmph in around 13seconds. The engine has variable valve timing and is amongst the lightest internal combustion engine around. A turbo version could be launched along the way too.

The 108 would use high-strength steel for 50 percent of the body. At the front the hatch would use struts while at the rear would be a torsion beam. Toyota, Peugeot and Citroen had reached an agreement (TPCA) to produce small cars for Europe and the 108 is expected to rival the Volkswagen Up. The hatch would be unveiled next year and Peugeot’s partnership would not be restricted to only to hatchbacks. The two manufacturers would also make vans/UV’s and light commercial vehicles. The UV wouldn’t use an all new platform and would be derived from one of the existing vehicles of either of the two companies. The 2 manufacturers however would work on engineering completely new vehicles too and a statement said, “Under the plan, Toyota Motor Europe is to participate in the development and industrial investment costs for the next generation product’. The collaboration between the two companies is expected to last beyond 2020. In a statement Toyota Europe President and CEO Didier Lorey said, ‘The LCV segment is an important one for us in many markets throughout Europe.’ ‘By joining forces with PSA Peugeot Citroën, we have found a good solution for our loyal customers, following the recent discontinuation of our own Hiace model. We already enjoy a successful joint-venture partnership with PSA Peugeot Citroën in the small car segment and they are a leader in the European light commercial vehicle market, with a solid reputation for quality and versatility,’ he added.

Meanwhile Peugeot is also going to become more aggressive in emerging markets like ours in the near future. Though the 108 would definitely be in the scheme of things, Peugeot would be first concentrating on the 301 sedan which would be also launched in Eastern Europe, Africa, Asia and South America. David Rio, director of Peugeot’s international operations in a statement told Autocar UK magazine, ‘We want to attack these new markets. We have a vehicle of conquest, and have great faith and hope.’