Toyota plans $429 mn small car plant in India

Japanese car major Toyota Motor Corp is reported to be planning an investment of $330 to 420 million (about Rs 1,890 crore) for setting up a small car plant near its existing facility in Bangalore.

A media report from Tokyo said the new plant, Toyota's second Indian manufacturing facility, will have an initial capacity of 1,00,000 cars a year. When contacted, officials of Toyota Kirloskar Motors, the joint venture of the Japanese firm with Kirloskars, neither denied nor confirmed the news.

"It is too early to comment on it," KK Swamy, deputy managing director, TKM told PTI. While the Japanese auto major holds 89 per cent stake in the JV, Kirloskars have 11 per cent.

Toyota had set an ambitious target of garnering about 10 per cent of the Indian car market by 2010.

According to the report, the small car to be rolled out from the proposed new plant would be priced at about 8,00,000 yen (approximately Rs 2,88,000), the lowest price of Toyota cars.

Toyota's first Indian plant became operational in 1999. Currently, it sells the Corolla and Camry sedans and multi purpose vehicle Innova, while it had phased out its once popular MPV Qualis.