Toyota Motor Corp, world’s leading car manufacturer by sales, is planning to invest $680 million for its second plant in India. Toyota Motors leads the world’s car sales figures but still has to mark its strong presence in India. In order to step up its sales in India and capture larger market share, it also plans to launch a small car in India. The company has not yet announced the price for its small car but it is expected to cost between Rs. 3.5 lakh to Rs. 4 lakh.
The company plans to start manufacturing is compact car and Corolla sedan from its second plant from the year 2010. It has announced to invest 68 billion yen India to step up its manufacturing capacity. The plant will be located in Bidadi which falls in the outskirts of Bangalore. The plant shall have an initial capacity of manufacturing 10000 units annually which would increase its capacity to 160,000 vehicles in India. It also plans to spend another 35 billion yen for the buildings and basic equipments required for the plant.
"An additional amount of around Yen 33 bn (about Rs 15.53 bn) will be invested for both general-purpose and specialised equipment necessary for manufacturing a new compact vehicle," the company said in a statement.
