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| Toyota, Daihatsu set to build car plant in India TIMES NEWS NETWORK & AGENCIES[ FRIDAY, JULY 08, 2005 02:23:31 AM] NEW DELHI/TOKYO: The already overcrowded small car market in India is set to witness the entry of a new volume player in Toyota. The Japanese car maker is planning to invest $89 million (Rs 387 crore) to set up a new factory in India — along with its mini-vehcile making arm Daihatsu — to roll out a new compact car by 2007. The model most likely to be produced at the new plant is a 1-litre-class car based on the Passo model that Toyota and Daihatsu co-developed. The plant — plans for which are currently being explored — is expected to house a capacity to produce 100,000 small cars a year. A Toyota spokesman in India, when contacted, said the plans have not been frozen yet, but sources told The Times of India that a new plant with Daihatsu is one of the top options being considered by Toyota. Meanwhile, Japan’s Nihon Keizai newspaper reported on Thursday that Toyota will build this new plant next to the existing facility in Bangalore, where it produces the crossover utility vehicle Innova and premium sedan Corolla. The venture will mark Daihatsu’s entry into the Indian market, where it is planning to fight for a share of the compact car market pie. International reports quoted a spokeswoman at Daihatsu saying that the company aimed to build cars in India at some point. Daihatsu, Japan’s second-largest minivehicle maker after Suzuki, will manage and operate the new plant. Toyota and Daihatsu plan to jointly set up a firm to supervise the local operations. Toyota operates through a KJV ith the Kirloskar group in India, but the Indian partner today has just around 1% stake in the venture. Compact cars are popular In India and drive sales for major players such as Suzuki and Hyundai. |
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