Toyota might need to invest big for small car for India

Toyota has already expressed their plans to launch a small car in India to tap into the local market to expand their base in India. The latest incoming news suggests that the company might need to invest as much as Rs 1,750 crore for the small car project.

This is much more than what they have invested in their Indian operations until now. Nevertheless, the returns can be very rewarding considering the sales of small cars in the Indian market.

Toyota Kirloskar in the last seven years has only invested around Rs 1,200 crores. They have already sent a proposal to the Karnataka Government for setting up a second plant worth around Rs 1,200 crore but looking at the requirement of the small car project, they might expand this investment plans.

The aim is to launch this small car in India by 2008 and for this; they would have to start working on the plant this year itself. Toyota would have to massively overhaul their dealer network and setup more centers to supply spare parts.

Popularity: 1%