Toyota might launch a Rs 2,88,000 car in India

Toyota Motor reportedly investing $429 million on a small car plant in India

Market sources are claiming that world’s second largest automaker Toyota is considering an investment of USD 330 to 420 million in India to setup a small car manufacturing plant here.

This plant could be built near their existing plant located in Bangalore.

A news report quoted Japan’s Nikkei business daily saying that the plant will have an initial capacity of 1,00,000 cars a year.

The Indian division of the company declined to comment on the news item. TKM Deputy Managing Director KK Swamy said in a statement: “It is too early to be commenting on it.”

The company already has stated that they are aiming to achieve a market share of 10% in India by 2010.

Another report in the media claims that the company could price this rumored car for just around Rs 2,88,000 in the Indian market. This could become a potential challenger for the Maruti Alto model.

The company currently sells models including Innova, Corolla, and Camry in the Indian market.