Toyota eyes India
Toyota is forging a joint venture with DaFa, a Chinese auto manufacturer, to set up a plant in the southern Indian city of Bangalore. The $1 billion investment will bare fruit in 2007 when it begins production on the compact Passo at a pace of 100,000 units/year.
Having overtaken Ford as the world's #2 car company, Toyota now has only GM in its way towards global domination and establishing market share in developing countries is a key strategy. India is the next untapped mega-market after China and it is estimated India's auto market will double by 2010, reaching annual sales of 2 million units.
Toyota already has a joint venture with India's Kirloska Group to produce cars and sold a record high 48,000 units in 2004 -- but its initial investment can no longer satisfy the growing demand, hence, the new JV with DaFa. Interestingly, Suzuki, who entered India in the early 90's, commands over 50% of the market.
see: ChinaCars
posted by Astro Boy #37 @ 7/15/2005 09:28:00 AM
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