Daihatsu is studying two of its existing small car models--Cuore and Sirion --for the purpose, Daihatsu manager (product planning group) Tetsuya Oka, said here.

The feasibility study is currently underway to finalise the model and to set the time table for the car launch. The model, once finalised, would be introduced through Toyota's existing joint venture company in India -- Toyota Kirloskar Motors Pvt Ltd (TKMPL).

"We have shortlisted two models but a decision on the final one is yet to be arrived at. We also have not set any definite timeframe for introducing the small car in India," Oka added.

The small car is likely to be Toyota's next offering for the Indian roads after the multi-purpose vehicle based on Kijang, set to hit the streets in January 2000.

Cuore is a practical minicar while Sirion is a compact car, both powered by a 989cc double overhead cam (dohc) 12-valve efi engine producing a maximum output of 40.5kh/5,2000rpm.

TKMPL would mark Toyota's second innings in the Indian market. It may be recalled that the Japanese car major had floated a joint venture with the DCM group a few years ago to manufacture the Dyna range of light commercial vehicles for the Indian market. DCM held a majority stake of 74 per cent in the venture with Toyota controlling the rest 26 per cent. However, the venture failed and both partners decided to call off the project. However, Daewoo Motor Company of South Korea stepped in and offered to buy the stake and form a joint venture with DCM for manufacturing Cielo cars along with a limited number of light commercial vehicles.

The current venture (TKMPL) was floated as a 74-26 joint venture with the Bangalore-based Kirloskar group. However, Toyota had later hiked its stake in the venture to 87 per cent.

Toyota has an FIPB approval to set up a $170 million joint venture to manufacture a ten-seater multi-utility vehicle for India.

The assembly plant for the MUV has been set up in Bangalore and the vehicle would sport a diesel heart, details of which are being worked on at the moment.

The company has already invested close to $170 million in the project for introducing the first model, which will be the key to success in India.

The mega industrial park being set up by Toyota would house several component manufacturing units for the vehicles to be produced from the joint venture company. This is also as part of the company's efforts to achieve 70 per cent localisation during start-up of the MUV production.

The industrial park will house a number of medium scale Japanese companies besides several local ventures. "This is as part of our attempts to meet the localisation levels prescribed in the Indian automobile policy,'' company sources said here.

The start-up capital for the project is around Rs 45 crore.

Setting up of the industrial park is also part of the company's plans to get some of its international vendors to India. "By getting our own international vendors for some critical components, we can ensure the quality standards for the cars being manufactured here."

Meanwhile, Toyota Tsusho Corporation (TTC), the trading arm of the Toyota group, is setting up a joint venture with Lakozy Motors Pvt Ltd for retail and sales and servicing of made-in-India Toyota cars in Mumbai.

Besides, the companies are also negotiating possibilities of extending their sales and service partnership for the cars to be produced under TKMPL to other cities, including Delhi.

TTC would control the majority 93 per cent stake in the venture while Lakozy will hold the remaining 7 per cent. The partners have already got the FIPB approval to go ahead with the project.