Toyota to build low-cost car

Toyota officials have said that the company is looking to launch a new low-cost car within the next two years. A production location has yet to be confirmed but sources indicate that India is the leading global candidates with Brazil still in the mix. The new car is expected to sell in emerging markets with the possibility of moving into more developed areas.

Toyota already has one plant near Bangalore, India with a production capacity of 60,000 units a year and plans on building a new 100,000 unit facility on that site. Toyota owns 430 acres of land at the site, enough for a few more plants and a total annual capacity of 630,000 units, according to Automotive News.

Toyota sold only 48,000 vehicles in India in 2006, trailing its rivals Maruti Udyog Ltd, Tata Motors and Hyundai Motor. Tata Motors is building a small car priced at about 100,000 rupees ($2,440), scheduled to launch in the second half of 2008.