The Japanese News Digest reports that Toyota and its subsidiary Daihatsu are planning to jointly build a plant in India to produce small cars with engines smaller than 1,000 cc.

Production at the plant, which will have an annual capacity of 100,000 cars, will start in 2007 at the earliest, the report said.
In 1999, Toyota set up a joint venture named Toyota Kirloskar Motor Private Ltd in Bangalore, India. The joint venture produced approximately 47,000 cars of Toyota’s two passenger car models in 2004.