Toyota, Daihatsu develop $5,000 car for India-paper

TOKYO, Oct 29 (Reuters) - Toyota Motor Corp (7203.T: Quote, Profile, Research) and its mini-vehicle affiliate Daihatsu Motor Co (7262.T: Quote, Profile, Research) are developing a small car that will likely sell for around 500,000 yen ($5,044) in India and other emerging markets, a newspaper reported on Wednesday.

The Asahi daily reported Toyota plans to roll out the new vehicle in the early part of 2010s as its fourth brand after Toyota, high-end Lexus, and Scion that targets younger generations in the United States.

The battle to win India's millions of cost-conscious consumers have been heating up with Tata Motors (TAMO.BO: Quote, Profile, Research) scheduled to launch the Nano, priced at around $2,000, and a venture of Bajaj Auto (BAJA.BO: Quote, Profile, Research) with Renault (RENA.PA: Quote, Profile, Research) and Nissan Motor (7201.T: Quote, Profile, Research) building a similarly priced car.

Toyota will likely produce the low-priced car at a new plant in India and is considering selling the model in Brazil as well, the paper said.

Toyota spokeswoman Kayo Doi declined to comment on the report, saying the company does not discuss its product plans.

Totyota has been developing another low-priced car, which will be around 800,000 yen, but it decided that it needs even cheaper vehicles to expand its share in the Indian market, the paper said. (Reporting by Sachi Izumi; Editing by Anshuman Daga)