Toyota plans to produce 30% fewer vehicles in December because of declining sales, but won't cut its INR32 billion investment plan for the country.

The Press Trust of India reported remarks by the local Toyota unit's MD on Monday.

"Everywhere else in the world, Toyota has put on hold all investments for expansions, except India," Hiroshi Nakagawa, managing director of Toyota's local unit, said in the report. "We will decide about the future productions for January and February depending on the market condition for this month."

Toyota produces the Innova multipurpose vehicle and Corolla sedan at a 60,000-unit-a-year factory on the outskirts of Bangalore. It also imports the Camry sedan and Land Cruiser Prado SUV.

In August, Toyota began construction of a new 100,000-unit-a-year plant at the site of its current factory. The company plans to start production of its first small car in India at this factory in 2010.

Toyota is spending about JPY35bn on buildings and basic equipment and an additional JPY33bn for the equipment needed for the new compact.

"The second plant is expected to contribute to TMC's aim to meet the needs of a broad range of customers as motorisation takes off in India," the automaker said in a statement.