**OT** Toyota's plans big investment in India
Posted March 17, 2000
Bangalore, March 17: International automobile major Toyota has said it has plans to invest between $ 500 million to $ 700 million in India, but ruled out introducing a small car in the country for the present.
Toyota Kirloskar Motor Ltd (TKM) has officially opened its manufacturing plant at Bidadi, near Bangalore, which has an initial authorised capital for its first phase of operation of Rs. 700 crore ($ 170 million).
TKM is a joint venture between Toyota Motor Company (TMC) of Japan and the Kirloskar group, manufacturer of industrial engineering equipment.
On a price cut of Qualis, "Rather than price cut, the company is considering to increase the price of Qualis even as continuous efforts will be made with regard to customer satisfaction," said Sachio Yamazaki, Managing Director, TKM
He also said that the company did not have export plans for Qualis now, but in future efforts would be made not only to export finished products but also components from the Bidadi plant.
Yamazaki said that the Kirloskar Group's equity had come down to 11 per cent from the earlier 26 per cent as the latter had said there would be a delay in payment of increased capital, which had later been paid for by TMC.
But the Kirloskar group would buy back the equity by 2004 and the original equity structure (74:26) would be restored, he added......
india-today.com
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