Toyota may double dealership in 2 years

Toyota Kirloskar Motors is planning to double the number of dealership in the country in another two years from the current 48.

As a part of the expansion of its sales network, the company would penetrate in smaller towns and rural markets, said Toyota sources. Now, the company has dealership only in big cities and towns.

Toyota will prefer to expand with different set of dealers rather than giving the dealership chain to a limited number of people, said the Toyota official.

Leading auto analysts in Mumbai said, it is highly profitable to be a Toyota dealer, with the company doing exceedingly well in sales.

Toyota has targeted a sales of 50,000 of its recently launched Toyota Innova this year. The company sold 36,000 Toyota Qualis in 2004. Qualis was later discontinued.

Toyota Motor Corporation, along with its small car subsidiary Daihatsu Motor Co, is planning to bring small cars into the country.

It will set up a facility for manufacturing small cars in any one of the states - Karnataka, Haryana and Uttaranchal - with an investment of about $89 million.

The plant, which will have a production capacity of 100,000 cars a year, is expected to commence operations in early 2008. Passo model is likely to be produced at the new plant.

Once set, the making of cars and operations of the plant would be managed by Daihatsu. The marketing and sales activities, however, will be taken care by Toyota Kirloskar Motors, Toyota's joint venture in India, said company officials.

Karnataka would be Toyota's first choice for its small car facility as the company already operates a plant of Toyota Kirloskar Motors near Bangalore for making cars such as Innova.

Besides, Karnataka government has offered attractive incentives to the company, said officials. The company has more than 400 acre spare land near its current plant.

However, states such as Haryana and Uttaranchal are pressing with equal vigour.

Toyota has a stockyard at Manesar in Haryana from where the company supplies cars to the northern region of the country.

Manesar is uniquely located attracting automobile manufacturers as Honda Motorcycles has got a plant there.

Maruti is setting up its new manufacturing facility in Manesar, which is expected to be commissioned by 2006 end.