Toyota to sell low-cost car in India

Tokyo: Toyota Motor Corp plans to launch a compact car priced at the equivalent of less than 800,000 yen ($7,165) in India by around 2010 as it aims to boost sales in emerging markets, the Nihon Keizai newspaper said on Tuesday.

The paper said Toyota is struggling to keep its market shares in emerging markets due to a lack of low-cost models, and faces competition from rivals like Suzuki Motor Corp and South Korea's Hyundai Motor Co.

A Toyota spokesman said the company has been considering developing a car for emerging markets, but no details have been decided.

The new vehicle, which will be developed jointly with Toyota unit Daihatsu Motor Co, will be powered by a 1-litre engine. It will be more than 100,000 yen cheaper than the lowest priced vehicle Toyota currently offers anywhere, the paper said.

The vehicle will also be sold in Central and South America and in Europe, it said. The business daily also reported on Tuesday that Toyota is considering paying a quarterly dividend starting this business year.