Toyota eyeing emerging nation for new factory

ASSOCIATED PRESS

TOKYO --

Toyota Motor Corp. is considering building a new plant to make low-cost, small cars for emerging markets, a spokeswoman said.

The automaker, which has announced plans to open a small-car plant in India, is in the early stage of planning for a second factory in an emerging country, said a spokeswoman who asked not to be named because of company policy. Toyota has not decided details such as the location, production capacity and the time line for the plant, she said.

The Tokyo Shimbun regional newspaper reported Wednesday that Toyota is eyeing a factory in Brazil for a launch in 2011 for the fast-growing auto markets in South America.

Toyota plans to invest billions of dollars in the plant, which would have a production capacity of about 150,000-200,000 vehicles a year, the newspaper said. The small sedan and hatchback models would be priced at around $9,540, the paper said.

Other top carmakers, including General Motors Corp. and Nissan Motor Co., are also working on cheap cars targeting India and other emerging markets.

The Renault-Nissan French and Japanese auto alliance said Monday it is forming a joint venture with Bajaj Auto Ltd. of India to develop, make and sell an inexpensive car there with a starting price around $2,500.