With the domestic auto market showing signs of recovery, Toyota will increase its vehicle production to full capacity in India in the next two months. Toyota India had cut its production to 3,500 units a month in November. 2008. It will produce 3,800 units in May and gradually increase it to 5,000 units by July, 2009. Toyota India will introduce two models in the current year and add 65 new dealerships by 2010 in its efforts to expand its presence in the country.

“On the basis of the market’s performance last year, we cut our output, but since in the last four months the market is coming back on track, we will increase the production of our vehicles from May,” TKM Deputy Managing Director (Marketing) Sandeep Singh said.

TKM currently has a production capacity of 60,000 units per annum. In March, the company sold 3,634 vehicles. The domestic passenger car sales grew by 21.8%  in February and was marginally up in March after witnessing slump in sales last year, which lasted till January (down by 3.2%) this year. In view of the upswing in auto sales, Toyota is planning to bring in new models to India.