Toyota gets ready for expansion in Karnataka

The Indian subsidiary of the world's second largest carmaker Toyota Motor Corp, Toyota Kirloskar Motor, is reportedly considering an investment of around Rs 1,500 crore to expand operations in India, according to informed sources.

A Toyota Kirloskar delegation led by managing director Atsushi Toyoshima met Karnataka chief minister N Dharam Singh over breakfast on Tuesday and discussed various issues pertaining to the company's operations in India.

Sources in the Karnataka government confirmed the meeting and said that the state government is expecting a "formal proposal" within a few days. However, Toyota Kirloskar sources declined comment.

Investment proposals over Rs 50 crore are decided upon by the high level committee on investments headed by the chief minister.If the formal proposal is actually received it will be put up before the committee's next meeting scheduled for October 6.

Last week industries minister P G R Sindhia had told reporters that the government had received a proposal from the company regarding its expansion.

It is said that Toyota has received invitations from various state governments to invest in their states. A formal announcement on their investment plans for India is likely to be made from the company's headquarters in Japan, sources said.

Toyota Kirloskar started production in India in December 1999 and has two operations (car plant and transmission plant) at Bidadi on the outskirts of Bangalore. It presently has a capacity of 60,000 cars annually.

Toyoshima had said recently that without a compact (small) car in its stable, it is impossible to gain a substantial presence in India.

The company presently commands a 5 per cent market share in the one million-a-year passenger car market in the country.

Toyota has made no secret of its ambition to capture 10 per cent market share in India by 2010 and 15 per cent by 2015. The company has projected that the Indian passenger car market will double every five years and by 2015 reach four million units.

Toyota's Innova and Corolla are manufactured here, while Camry and Land Cruiser Prado are offered in India as completely built-up units.

"We want to be present in all segments in India," Toyoshima had said.