New Delhi: Toyota Motor Corp., the world’s biggest auto maker by market value, plans to increase its capacity in India tenfold to 600,000 units by 2015.
The company announced the plans in a presentation by Atsushi Toyoshima, managing director of Toyota’s local unit. He didn’t elaborate on the models envisaged for the Indian market. “We are very keen on the Indian market, but nothing has been decided yet,” Toyoshima said on Thursday.
Toyota will join Honda Motor Co. and General Motors Corp. in increasing capacity in India, Asia’s fourth-biggest automotive market. Suzuki Motor Corp.’s local unit, Maruti Udyog Ltd, and Hyundai Motor Co. are also building factories as economic growth boosts demand for automobiles.
The local unit, Toyota Kirloskar Motor Pvt. Ltd, produces the Corolla sedan and Innova MPV at a factory near Bangalore in Karnataka. The company imports the Camry sedan and Land Cruiser Prado SUV.
Toyota had 3.7% of India’s passenger vehicle market in the fiscal year ended 31 March.
Economic growth and rising disposable incomes are boosting vehicle sales in India, where seven in 1,000 people own an automobile, compared with 500 in Western Europe. The opportunity has led auto makers such as General Motors and Volkswagen AG to announce investments of more than $5 billion (Rs20,000 crore) by 2012.
Annual car sales in India may triple to three million by 2015, according to the Society of Indian Automobile Manufacturers. The local automobile industry seeks to reach a size of $145 billion by 2016, according to India’s Automotive Mission Plan for 2006-16 issued in September by the vehicle manufacturers. BLOOMBERG