Toyota small car may run on Bridgestone

Toyota Motor Corporation is in talks with Madhya Pradesh-based tyre manufacturer Bridgestone to source the tyre requirements for its much awaited small car.

The Japanese carmaker is expected to seal the deal shortly. Hisao Ikawa, managing director, Bridgestone India, said, "We are most likely to bag the order for supplying radials to Toyota's proposed small car, which should roll out in 2009-10.

Toyota officials will visit our facility in the coming weeks to evaluate the demand-supply feasibility." Other tyre manufacturers were also expected to submit their bids for the project, sources said.

Last month, Toyota was reported to have earmarked Rs 1,890 crore for the small car project. The facility, which will come up next to the company's existing facility in Bangalore, will initially produce 1 lakh cars a year.

Bridgestone has been a long-time supplier to the world's largest carmaker Toyota, for the global as well as domestic market. The company has tied up with Toyota for radial supplies for the F1 races as well.

Last month, Bridgestone announced a production hike, along with launch of two new radials. Buoyed by the current surge in demand, the company, which has 30 per cent market share, has ramped up its output to 11,000 units a day. It claimed that the production would be further scaled up to 15,000 units a day by the end of this year.

The small car, to be rolled out from the proposed new plant, would be priced at about 8,00,000 yen (approximately Rs 2.88 lakh), the lowest price for any Toyota car in the country.

Toyota's first Indian plant became operational in 1999. At present, it sells the Corolla and Camry sedans and multi-purpose vehicle Innova. The carmaker has phased out its once popular brand, MPV Qualis.