New Delhi: Japanese auto maker Toyota Motor Corp is gearing up to introduce a 'strategic' small car in India by 2010 by. The company will invest Rs1,400 crore ($350 million), for setting up a second plant in the country at its existing location in Karnataka.
The new plant will have a production capacity of 1,00,000 units and will become operational by 2010, he added. The company's current plant has a capacity of 63,000 units a year.
The plant will make the Corolla sedans along with the small cars
The company plans to have high level of localisation for the small car by procuring several components and sub-systems from Indian vendors.
Primarily the car maker plans to sell the small car in the fast growing domestic market, though some will be exported as well, the company stated
"From this plant, we will roll out a strategic new small car which is currently under development at our Japan R&D facility. The small will meet the broad needs of the Indian customers," Toyota Kirloskar Motor (TKM) deputy managing director K K Swamy said.
Toyota did not disclose the price of the new car.
The Japan-based automaker said last year that it plans to capture 10 per cent of India's market.
In 2007 Toyota sales accounted for a mere 0.6 per cent of the Indian car market and has lagged behind its competitors in domestic sales. Automakers including General Motors Corp., Honda Motor Co. and Volkswagen AG have already announced a combined $6 billion investment for India, the world's second-fastest growing major economy.
According to the Society of Indian Automobile Manufacturers, industrywide sales in India jumped 12 per cent to a record 1.2 million units for the year ended 31 March 2008. India's car market, which doubled in the past five years, may triple to 3 million units by 2015, according to government estimates in 2006.
Toyota runs its Indian operations through a joint venture with the Kirloskar Group.