* Indonesia govt confirms plan being considered
* Car may be priced below $10,000 - Nikkei
* To be sold in Indonesia, neighbours - Nikkei
* New plant output 100,000 vehicles annually - Nikkei
* Toyota and group firm Daihatsu to build car - Nikkei
(Updates with quotes from Indonesia govt official)
TOKYO/JAKARTA, Feb 16 Toyota Motor Corp
and group firm Daihatsu are considering
building a low-cost car in Indonesia aimed at consumers there
and in neighbouring countries, a senior official at Indonesia's
industry ministry on Wednesday.
With vehicle sales in the United States and other developed
economies still to recover to pre-financial crisis levels,
Toyota and other carmakers are vying to take advantage of
growing demand for inexpensive cars in emerging markets.
The car, smaller than the Etios it launched in India in 2010,
will cost around 800,000-900,000 yen ($9,550-$10,740), the
Nikkei business daily reported earlier on Wednesday.
" It is under consideration at the moment by the group,"
said Budi Dharmadi, director general for high-technology
industry at the ministry of industry, in a text message to
Earlier this month, Renault said it was planning a
new factory in Morocco that would eventually be able to produce
350,000 cars a year under its Dacia low-cost brand.
India's Tata Motors is expanding sales across India
of its Nano, dubbed the "cheapest car in the world" with a price
tag of a little over $2,000, and has touted plans to bring an
electric version to Europe.
Minivehicle specialist Daihatsu, 51 percent owned by Toyota,
will invest around 20 billion yen in a new factory able to build
100,000 cars annually in Indonesia, 70 percent of which it will
supply to its parent company, the Nikkei said.
Production, which will be 50,000 cars in the first year, is
due to begin as early as 2013, the paper said.
Toyota spokeswoman Shiori Hashimoto said it did not comment
on product plans.
By bolstering output in Indonesia, Toyota aims to make the
country its second big production base in Southeast Asia after
Thailand, the report said.
"We view this story, if accurate, as positive for both
companies," analyst Issei Takahashi of Credit Suisse said in a
note to clients.
"As Toyota had previously made no mention of a strategic
emerging-market offering positioned below the Etios, this news
could well heighten expectations regarding the company's
strategy for industrialised countries," he said.
Growth in emerging markets was critical to raising Toyota's
operating margin, he said.
Shares of Toyota fell 0.1 percent to 3,905 yen in Tokyo
trading, underperforming a 0.6 percent rise in the Nikkei
average . Daihatsu shares rose 2 percent to 1,328 yen.
(Reporting by Tim Kelly and Isabel Reynolds in TOKYO and Yayat
Supriatna in JAKARTA; Editing by Edwina Gibbs and Muralikumar