Mumbai: Honda Motors and Toyota Kirloskar have announced plans to launch small car in India.

Toyota Kirloskar Motors plans to bring a small car in the next two or three years as a part of its strategy to grab 10 per cent of the Indian automobile market by 2010.

"We still maintain the target of grabbing 10 per cent of the Indian automobile market by 2010, in which the small car will form a major chunk," Toyota Kirloskar Motors managing director Atsushi Toyoshima said on the sidelines of the SIAM summit.

"In the next two to three years we will bring a small car in India but as of now we have not finalised the plan," he said.

He, however, said, "We still haven''t finalised the location and the investment."

Honda Motors, meanwhile, said it was looking at bringing in a small car in the Indian market for expanding its product portfolio. Honda said it would set up a second plant in India, which could involve an investment of $200 million over a period of five years.

"We are looking at a small car for introducing in the Indian market," Honda-Siel India president and CEO M Takedagawa said.

"We are currently expanding the capacity at our Greater Noida facility to 1,00,000 units, following which we will set up a new plant with similar capacity," Takedagawa said.

Honda currently operates its car business in India through a joint venture - Honda Siel Cars India (HSCI) - where it has invested $200 million.

Honda expects to sell 62,000 units this fiscal against 43,000 in 2005-06. Of this, 40,000 are expected of ''Honda City,'' 16,000 of ''Civic,'' and 3,000 each of ''CRV'' and ''Accord,'' Takedagawa said.

On the proposed second plant from where the small car is to be manufactured Toyoshima said, "We still haven''t finalised the location and the investment." The company is looking at 20 per cent sales growth this year at 50,000 units compared to 42,000 units last year.