Japanese automobile major Toyota is looking at making a splash in the lower end of the Indian passenger car market, which accounts for over 50 per cent of the country's total car market.

Toyota till now has restricted itself to mid- to premium-end products, with offerings like the Camry, the Corolla and the Qualis.

Atsushi Toyoshima, managing director of Toyota Kirloskar Motor, told Business Standard: "Toyota has a premium, luxury positioning the world over. But the lower-end segment is clearly where the market lies.

"We can tap the resources of our subsidiaries like Daihatsu, and are intently looking at entering the lower end of the market. We are certain to get into the mass market in India," Toyoshima added. When the company finalises the product, it will be manufactured in India.

Explaining Toyota's India strategy, Toyoshima said: "We expect the Indian car market to explode in the coming years, something that is happening in China right now.

"Our strategy is to be prepared to capture that growth. We are now getting the groundwork right: expanding the sales and distribution network, the after-sales service network and even our manufacturing processes. We will need a new plant in our existing facility near Bangalore to expand our production capacity."

Toyota had already invested around Rs 900 crore (Rs 9 billion) in its car project in India and expected to break even this year, Toyoshima said.

When asked about diesel engine options for its passenger cars, Toyoshima said customers had requested for a diesel Corolla, but the low sales target for the car did not justify investments in a diesel engine.

In 2003, Toyota expects to sell 34,000 Qualis, 10,000 Corollas and 1,000 Camrys. By 2010, Toyoshima plans to double Toyota's marketshare in India from less than 5 per cent to 10 per cent.