BANGALORE: Following its success with premium cars and multi-utility vehicles in India, Toyota Motor Corporation is drawing up plans to enter the bus, truck and light commercial vehicle segments.
The Japanese auto major is scouting for more land in the country and is said to be once again in talks with the Rajasthan government for setting up a manufacturing facility for commercial vehicles.
When contacted, Toyota officials said, "As a policy we don't comment on our future plans". Toyota manufactures trucks and buses under the Hino brand and light commercial vehicles under the Toyota brand. For the fiscal ended March 31, 2007, Hino recorded overall truck and bus sales of 52,684 units in Japan and 47,550 units in exports.
India is turning an attractive market for trucks and buses. Volvo and Mercedes have spelt out major plans to compete in the $5-billion bus and truck market which is dominated by Tata Motors and Ashok Leyland.
"About 45 days ago a presentation was made by the Rajasthan government to Toyota for the purpose of setting up a manufacturing facility," said a source. Toyota indicated that it would come back with its plans, the source added.
Earlier, Toyota had met Rajasthan government with plans of setting up its small car facility. But the company has now decided to manufacture small car in Karnataka, at a brownfield plant at its existing facility in Bidadi.
"Any major auto manufacturing facility would require a minimum investment of Rs 1,500 crore," said an industry observer. Sources told tell ToI that the Rajasthan government plans to offer tailor made tax sops to the tune of about Rs 500 crore over a period of time for companies looking to invest in excess of Rs 1,000 crore.
Vendor sources said Toyota is also looking at setting up manufacturing facilities for its brands like the luxury segment Lexus and brands from its subsidiary Daihatsu.
Toyota is in parleys with the Karnataka government for additional land to set-up a housing society for its workforce. It expects to increase headcount in India once its small car operations kick-off.
The Japanese auto major is scouting for more land in the country and is said to be once again in talks with the Rajasthan government for setting up a manufacturing facility for commercial vehicles.
When contacted, Toyota officials said, "As a policy we don't comment on our future plans". Toyota manufactures trucks and buses under the Hino brand and light commercial vehicles under the Toyota brand. For the fiscal ended March 31, 2007, Hino recorded overall truck and bus sales of 52,684 units in Japan and 47,550 units in exports.
India is turning an attractive market for trucks and buses. Volvo and Mercedes have spelt out major plans to compete in the $5-billion bus and truck market which is dominated by Tata Motors and Ashok Leyland.
"About 45 days ago a presentation was made by the Rajasthan government to Toyota for the purpose of setting up a manufacturing facility," said a source. Toyota indicated that it would come back with its plans, the source added.
Earlier, Toyota had met Rajasthan government with plans of setting up its small car facility. But the company has now decided to manufacture small car in Karnataka, at a brownfield plant at its existing facility in Bidadi.
"Any major auto manufacturing facility would require a minimum investment of Rs 1,500 crore," said an industry observer. Sources told tell ToI that the Rajasthan government plans to offer tailor made tax sops to the tune of about Rs 500 crore over a period of time for companies looking to invest in excess of Rs 1,000 crore.
Vendor sources said Toyota is also looking at setting up manufacturing facilities for its brands like the luxury segment Lexus and brands from its subsidiary Daihatsu.
Toyota is in parleys with the Karnataka government for additional land to set-up a housing society for its workforce. It expects to increase headcount in India once its small car operations kick-off.
