Toyota plans new plant in US as SUV demand rises

28 February 2007

Mumbai: Toyota Motor Corporation, the world''s second-largest automaker, will build a new plant in Mississippi, the US to meet increasing demand for sports utility vehicles (SUVs).

The plant, estimated to cost $830 million (100 billion yen), will be Toyota''s eighth North American assembly plant, and is due to open in 2009, sources familiar with the plan said.

Japanese business daily Nikkei had reported earlier that t he plant would make about 150,000 Highlander sport-utility vehicles a year. Another report from Kyodo news agency put the investment figure at 200 billion yen and output capacity at 200,000 units. The plant will create about 2,000 new jobs, Kyodo said.

Toyota, which well on course to become the world''s biggest automaker overtaking General Motors Corporation this year, meanwhile, reported a 13 per cent jump in 2006 sales.

Its US market share rose 2.1 points to 15.4 per cent in 2006, aided by its Corolla compact car and the Prius gasoline- electric hybrid car, while GM''s share fell 1.6 points, and Ford Motor Co.''s dropped by 1.1 point.

Toyota overtook Chrysler as the third-biggest car maker in the US, putting its market share at a record high 15.4 per cent against the US brand''s 12.9 per cent.