Industrialist Vikram Kirloskar on Monday said he would begin negotiations with the Japanese automaker Toyota in March next to increase his stake in their joint venture Toyota Kirloskar Motor Pvt Ltd from one per cent to 11 per cent.

"As per the contract, I can increase the stake to 11 per cent from next year. I will send a letter in March and then discuss with Toyota officials on increasing the stake," Kirloskar, who is also TKM vice-chairman, told reporters Bangalore.

Kirloskar's share in the JV declined from 20 per cent in 1997 to about one per cent. TKM has sold over 100,000 units since it began production in January 2000.

Kirloskar said he would discuss with Toyota officials about the share price for which he would acquire the stake.

TKM has invested Rs 900 crore (Rs 9 billion) in its plant at Bidadi, employing over 2,300 people and the plant has a production capacity of 50,000 units annually.

Hopes to sell 2 lakh cars in 2 yrs

Toyota Kirloskar said on Monday that it hopes to sale over two lakh vehicles in the country in two years.

"With a production capacity of about 45,000 vehicles per annum, we should be touching 200,000 in two years," Toyota Kirloskar Motor Ltd managing director Atsushi Toyoshima told reporters.

TKML has completed production of 100,000 vehicles including about 95,000 Qualis, the multi-passenger vehicle, which was rolled out in January 2000, and luxury cars Camry and Corolla, he said.

TKML has invested over Rs 900 crore (Rs 9 billion) in its manufacturing plant set-up at Bidadi on the outskirts of Bangalore in 1997.

The auto major, which presently has a market share of 37.6 per cent in the MPV segment is aiming to increase it to about 40 per cent with sales of 34,000 units by the end of the year.

Toyoshima said the company aimed to tap 10 per cent of the total Indian auto car industry by 2010 and expand its market share with the introduction of new products.

However, he declined to comment on Toyota's plans to launch a small car in the Indian market.

TKML deputy managing director K K Swamy said the company was setting up a transmission equipment plant in Bangalore with an investment of Rs 480 crore (Rs 4.8 billion) to cater to the export market.