Toyota Motor to invest in small car market in Asia

Toyota Motor Corp (7203.T) and Daihatsu group firm (7262.T) will develop a low cost auto mobile in Indonesia targeting at buyers in their home ground as well as neighbouring countries reported by an auto industry expert.

The new car which will be smaller than Toyota Etios launched in 2010 is expected to be priced around 800,000 to 900,000 yen ($9550 to $10740). In the US and other developed auto markets which are yet to be recovered, Toyota Motors and other car makers are eying on the growing emerging auto markets to cater to the demand for the inexpensive cars.

In the beginning of this month Renault told announced that the company was planning to set up a new factory in Morocco which would eventually produce 350,000 cars in one year under the company's Dacia label brand manufacturing into a low cost cars.

Tata Motors the Indian utility auto mobile maker is broadening its sales of Tata Nano in India tagged at bit more than $2000 and is planning to bring the electric version in the European auto market.

Daihatsu, the Minivehicle specialist, (51 per cent owned by Toyota Motors) will invest almost 20 billion yen in the new factory outlet in Indonesia which will have the capacity to manufacture 100,000 units yearly, out of which 70 per cent will be supplied to its parent auto company.

Though when quizzed about the same to the Toyota spokeswoman Shiori Hashimoto she refused to comment on the same. Toyota is looking forward to investing in Indonesia as its second largest big manufacturer base after Thailand in Southeast Asia.

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