Autoblog

Automotive News is reporting that Toyota will launch a really cheap car in the next two years. Most likely to be built in India, it is primarily intended for sale in emerging markets, but could also find its way into more developed markets, too. So far, India and Brazil seem to be the leading candidates for hosting production of this inexpensive family car. One reason the company may be siding with India is that Toyota has already acknowledged it will be building a new plant there. A new facility with an annual capacity of 100,000 units is being built near Bangalore's existing facility, which has a capacity of 60,000 units.

Toyota trails Suzuki, Hyundai and Tata in the Indian market, so a new inexpensive model could help it capture more market share. They will face stiff competition from India's own Tata Motors, which recently announced a new small car that will start at just 100,000 rupees ($2,440) when it goes on sale late next year. Renault also offers a no-frills Logan sedan in India, and companies like Fiat and Volkswagen are also looking into this quickly expanding market.

[Source: Automotive News, sub. req.]

Tata Motors Ltd. of India has announced plans to build a five-seat car that it will bring to market for less than 100,000 rupees (around $2,200).

The company is set to build a $220 million dollar factory the communist state of West Bengal to build the discount offering, with hopes of having it on the market in two years. The new vehicle could result in up to 10,000 new jobs at the plant and the company's suppliers.

Tata did not disclose more specifics about the vehicle's construction, or its name. Officials were similarly mum on production projections, as well export possibilities.

(A Tata Indigo Marina is pictured)

[Source: The Associated Press via Detroit News; Tata Motors]