Thursday, 28 July 2011

Toyota to expand production and localisation unit with investment of Rs 898 crore




Toyota Kirloskar Motor (TKM), the Indian subsidiary of Toyota Motor Corp has announced further increase of its production capacity to 3,10,000 units by 2013. The expansion will come with an investment of Rs. 898 crores approx. and generation of new employment opportunities. The company had earlier announced its plan to expand the annual production capacity from 1,50,000 units to 2,10,000 units by first half of 2012. In line with TKM’s expansion plans and in order to cater to the increase in demand for Innova , Fortuner, Corolla Altis, Etios and Etios Liva, the company has decided to further increase production.
The production in the first plant will be enhanced from 90,000 units to 1,00,000 units and in the second plant from 1,20,000 units to 2,10,000 units. The first plant will manufacture Innova and Fortuner and the second plant will manufacture Etios, Etios Liva and Corolla Altis. The company also mentioned that they will also expand the growth of Toyota in India by locally manufacturing the parts of Etios and Etios Liva by Toyota Kirloskar Auto Parts Pvt Ltd (TKAP) which plans to install aluminum casting and machining lines, scheduled to begin operations in early 2014. The lines are to be installed at TKAP’s new “Etios” and “Etios Liva” engine plant, which is scheduled to start operations in the third quarter of 2012. The installation will see an additional investment of Rs. 750 crores approx. and generation of new employment opportunities.
TKAP had earlier, announced the setting up of Engine Plant and expansion of its Transmissions EOU, to cater to Etios and Etios Liva, with a combined investment of Rs. 500 crores. TKAP serves as a production and supply base for manual transmission for IMV series vehicles to India, Thailand and Argentina. In addition to engines, TKAP is scheduled to start producing transmissions for Etios and Etios Liva in early 2013. Exports of the transmissions are also being planned.

Vikram Kirloskar said “The Etios project is a milestone phase in the growth of Toyota in India. We are now preparing to cater to increasing demand and are working on the expansion of Toyota in India. Etios and Etios Liva have been designed specifically for the Indian market. The localization project is vital to provide best quality product at a competitive price”.
Hiroshi Nakagawa, Managing Director, TKM said “In line with the growing demand for our vehicles, we have decided to further expand production. The demand for Etios and Etios Liva has been encouraging and we are gearing up to cater to a larger number of customers. We would like to thank our customers for their response to Etios Liva. We have received more than 4000 bookings for Etios Liva so far.” 

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