Tata Motors may have some serious competition on its hands if Toyota does indeed enter the low-cost automotive sweepstakes as is currently rumored. Renault's Dacia brand may be the most credible cheap car currently on the market, but this particular segment seems to be booming as emerging markets begin their slow and steady crawl towards... well, emerging. They are going to need wheels, so Toyota is said to be teaming up with Daihatsu, its subsidiary in Japan that specializes in small Kei cars for its home market. Those little machines could well prove invaluable in the design and engineering of small, inexpensive cars.
Toyota already owns one factory in Bangalore, India and has another planned. The new low-cost model would likely be built in one of these two plants and would be marketed both in India and in Brazil by 2015. Interestingly, the new car would be badged neither a Toyota nor a Daihatsu. Rumors indicate that a completely new brand would be created for the model so as not to damage the Japanese automaker's carefully cultivated image.

[Source: Automotive News - sub. req'd]

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