Toyota Motor Corp. plans to build a new plant in India in a bid to challenge Suzuki Motor Corp.'s dominance in the car hankering country.

The company will spend about 35 billion yen ($347 million) to open the plant in 2010, Toyota announced on Friday.

The factory will produce the Corolla sedan and a new low-cost small car, developed specifically for emerging markets. It is said that the plant will have an annual capacity of 100,000 vehicles.

Toyota, with 0.6 percent of the Indian car market last year, has lagged behind rivals in the world's second-fastest growing major economy.

Automakers including General Motors Corp., Honda Motor Co. and Volkswagen AG have already announced a combined $6 billion investment in the Asian country.

MP/MMN