Japanese auto company Toyota is trying to lower its investment on its small car, to be launched in 2011. The company is in talks with vendors to have them procure components at the lowest possible rates and thus cut down on production costs. Mr Hiroshi Nakagawa, Managing Director of Toyota Kirloskar Motor (TKM), said at the Annual SIAM Convention last week that the company was trying to reduce investment at its upcoming second plant in Bangalore, from which it will roll out its 'strategic' small car in 2011. Nakagawa, however, refused to give a specific percentage by which TKM wished to reduce investment. He also said Toyota was not planning to launch its small car brand Daihatsu in India, as was being speculated by the media.

Meanwhile, Shekhar Vishwanathan, Deputy Managing Director of TKM (Commercial Division), said that the company is planning to make India its small car hub by the year 2012. TKM sold a total of 52,000 vehicles in 2008-09, and is targeting a sales figure of 55,000 units for FY 2009-10.

Courtesy: www.driveinside.com