"We have not decided to introduce new models or to produce the Yaris in India. We have no plans to make any announcement on India," a Toyota Motor spokesman said.

The Business Line daily in India reported on Monday, that the Japanese automaker's Indian arm, Toyota Kirloskar Motors Ltd (TKML), which began selling its Qualis model in the Indian market just over a year ago, is firming up plans to begin importing the popular Corolla, Camry and Land Cruiser models.

It also said the world's third-largest automaker, had been conducting feasibility studies and was inclined to begin making the Yaris in India. The report quoted an unidentified source, as saying Toyota was preparing to make an announcement to that effect in June.

"As a global automaker, we always consider and study various possibilities on sales and production expansion. But there is nothing concrete, which we can disclose on our Indian expansion," the spokesman said.

The Yaris is Toyota's entry in the so-called B-segment of the global auto industry, small cars with engines ranging from one to 1.8 litres produced at factories around the world, from a common platform and using common parts.

The B-segment is the most brutally price competitive sector of the auto industry, and analysts say having a competitively priced model holds the key, to being one of the four to six global auto giants to survive.

Other automakers are expected to either fail, be absorbed or become small niche players.

The report said Toyota initially plans to launch a diesel version of the Yaris by mid-2002 and will produce 30,000 units a year in India.

"The report is based on speculation," the Toyota spokesman said. He added, however, that Toyota's Indian subsidiary, in which the Japanese maker holds an 88.9 per cent stake, produced and sold about 21,000 units of the Qualis model in 2000 and will boost annual production at its plant in the southern state of Karnataka to 50,000 by 2004 as had been scheduled.

(Reuters)