Forex

Chief minister B S Yeddyurappa unveiled the foundation stone for the new plant. TKM already has a car plant in the 420 acre campus at Bidadi with an annual capacity of 60,000 cars.

The new plant, with an initial investment of Rs 1,400 crore, will come up at the same campus. It is being specially built to make compact cars — both in petrol and diesel, for the Indian market. Though the company did not disclose the name of the new model, its specifications or pricing, it said the concept of the car is ready and currently working on the design.

Modest presence

To a question if Toyota will launch cars in India from the Daihatsu stable, which is a small car making company in the Toyota Group, Toyota Asia, Oceania & Middle East Operations Senior Managing Director Akira Okabe said “The new car for India will be developed by Toyota. But we will take ideas and support from Daihatsu and other Toyota plants in Asia.”

Mr Okabe agreed that though Toyota is the world’s number one car manufacturer, it has remained small in India with only 3 per cent market share. But the addition of a small car from the new plant will help Toyota enter the mainstream of the car market and gain market share, he said. “Our aim is to get at least 10 per cent market share after new car is added” said Toyota Motor Asia Pacific President Ryoichi Sasaki. Toyota will also use the new facility at Bidadi for exports of cars to many Asian and European countries, the company said.

In addition to the Rs 1,400 crore investment in the basic facilities, TKM may have to invest an equal amount in special equipments and facilities, Mr Okabe said . The new plant will generate 2400 direct employment and an equal number with its partners.