Toyota Motor Corp. plans to build a new plant by 2010 in southern India, concentrating on inexpensive, smaller model cars, the Nikkei business daily reported today.
The new plant, which would be built close to the company's first plant near Bangalore, would aim at producing 100,000 cars a year, roughly doubling the firm's output capacity in India.
It would cost roughly $328 million to $410 million (40 billion to 50 billion yen) to build, the report said.
Asked about the article, a Toyota spokesman said the company did not have any such concrete plans at present but stopped short of saying the report was incorrect.
Toyota, Japan's top automaker, has said it wants 10 percent of the fast-growing Indian market by 2010, when annual sales are expected to nearly double to 2 million units or even more.
Toyota sold 48,000 vehicles in India in 2006, including the seven-seater Innova, Corolla and Camry sedans, and Prado SUV.
Toyota has said it is considering developing a cheap small car for India and other emerging markets.
Its rivals Suzuki Motor Corp. and Honda Motor Co. have a sizeable presence and are expanding capacity.