MUMBAI, Aug 4: Japan's largest carmaker, Toyota Motor Corp, has joined hands with Pune-based Kirloskars to make family-type multi-purpose vehicles specially for Indian markets. The new company - Toyota Kirloskar Motor Ltd would invest $ 170 million in its new facility in Bidadi near Bangalore.

Toyota signed the joint venture agreement in Bangalore on Monday with Mysore Kirloskar Ltd, 18 months after it sold its stake in its first venture in India, light commercial vehicle maker - DCM Toyota Ltd, to SK's Daewoo Corp.

Sources say Toyota plans to produce 50,000 variants of its Kijang model with 2000 cc engines annually starting late 1999. It will hold 74 per cent stake in the new venture while the rest would be picked up by Kirloskars.

The Kirloskar group announced that the agreement is the result of a feasibility study conducted by Toyota and Kirloskars in 1996. It said that an official proposal would be submitted to the Indian government soon.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.