Toyota plans to build small car plant by 2010

TOKYO: Toyota Motor Corporation plans to construct a small-car plant in the southern Indian city of Bangalore by 2010 for about 40 to 50 billion yen ($ 330 to 420 million), a report said on Monday.

The move is aimed at cultivating India's rapidly growing car market where low-priced cars at 1.3 million yen or cheaper are dominant, the Nikkei business daily said.

The new plant, Toyota's second Indian manufacturing facility, will initially churn out 100,000 cars a year, which would be sold at about 800,000 yen, the lowest price of Toyota cars, it said.

Toyota opened its first Indian plant in 1999, which has produced the Corolla sedan and the Innova minivan at prices of more than 2.0 million yen, and Toyota's Indian market share has remained at about 4 per cent, it said.

Officials at Toyota were not immediately available for comment.