Owing to a dip in the passenger car sales, Toyota Kirloskar Motor Ltd (TKM), a joint venture between the Japanese auto giant Toyota and the Kirloskar Group, has decided to cut production by 30% during the current month.

Mr. Hiroshi Nakagawa, Managing Director, TKM stated, "This month, we are cutting production by 25-30 per cent. We will review the market scenario during the month. Accordingly we will decide for the next months."

Toyota has a capacity to produce over 5,000 units a month at its plant near Bangalore. The company indicated that it may have to resort to similar cuts even next year if the current market situation persists. However, despite the slowdown TKM announced a Rs. 32-billion (Rs. 3, 200-crore) India investment plan. Mr Nakagawa said, "Everywhere else in the world, Toyota has put on hold all investments for expansions, except India."

In November, the company produced 2,886 units but the slowdown in the Indian auto market has forced it to cut production in the current month. TKM earlier announced a sales target of 60,000 units for 2008. Last year, the company's sales in Indian market stood at 54,181. The company is also planning to launch the CNG (compressed natural gas) version of its utility vehicle 'Innova'.