After spoiling Ford's 100th birthday bash by displacing the blue oval to become the world's second largest carmaker, Toyota certainly has General Motors in sight. But in the Indian sub-continent, GM is preparing to take Toyota head on.

After launching the Chevrolet Optra at a price a tad lower than the Toyota Corolla, GM is now gearing up to launch the Panther - a sports utility vehicle from its Japanese partner Isuzu's stable - under the Chevy badge in India to take on Toyota's highly successful SUV Qualis.

The strategy, it appears, could be the one GM adopted to eat into the Corolla's market: price the Panther lower than the Qualis, currently at around Rs 800,000.

"It is a fact that Toyota is the one car company that we have to face in India, and we are all set to do that," said Aditya Vij, president and managing director of General Motors India.

"To begin with, the battle is between the Chevrolet Optra and the Toyota Corolla. But soon it will be extended to an altogether different segment," Vij added. GM also has to contend with other existing SUV offerings like Telco's Safari and Mahindra's Scorpio.

GM's latest strategy comes with its realisation of how price-sensitive the Indian car market is, and that growth would clearly be at the low end of the market. It recently launched the Corsa Sail, a hatchback priced marginally above the B-segment rulers - Hyundai's Santro and Telco's Indica.

Toyota, on the other hand, is still biding time for its entry into the mass market. In a recent interview to Business Standard, Toyota's country head said the company realised the market was in low-priced cars, but the firm's cost base and brand equity were hindering its entrance.