Toyota Further Expands Production and Localisation unit

July 27, 2011 - PRLog -- Toyota Further Expands
Production and Localisation unit

Toyota Kirloskar Motor (TKM) today 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.  

Furthering the growth of Toyota in India by locally manufacturing the parts of Etios and Etios Liva, Toyota Kirloskar Auto Parts Pvt Ltd (TKAP), 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.

Commenting on the localization project in India, Mr. 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”.

Commenting on the expansion of Toyota in India, Mr. 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.”
Overview of Toyota Kirloskar Motor Private, Ltd.
Managing Director    Hiroshi Nakagawa
Establishment   October 6, 1997 (start of production: December 1999)
Location   Bidadi - Suburb of Bangalore, Karnataka
Lineup   Local: Innova, Fortuner, Corolla, Etios and Etios Liva.
   Imported CBU: Camry, Prado, Prius and Land Cruiser 200.
Equity participation   TMC: 89%, Kirloskar Group: 11%
Employees   Approx. 5,000

TKM Production Structure
   Jul-11    First half of 2012          2013
First Plant Annual production capacity   80,000   90,000   100,000
Lineup    Innova, Fortuner and Corolla Altis         Innova and Fortuner         Innova and Fortuner
Second Plant Annual production capacity   80,000*   120,000   210,000
Lineup   Etios& Etios Liva    Etios, Etios Liva and Corolla Altis    Etios, Etios Liva and Corolla Altis
Production total   160,000   210,000   310,000
Investment   --   Rs 275 crores    Rs 898 crores

*Annual production will be increased from 70,000 in June 2011 to 80,000 in July by implementing two-shift operations and other production efficiency measures (no change in takt time)

Outline of Toyota Kirloskar Auto Parts Pvt Ltd (as of July 2011)

Location   Bidadi (32 km southwest of Bangalore), Karnataka, India
Managing Director    Hisashi Suzuki
Equity participation   TMC: 64%; Toyota Industries Corporation: 26%; Kirloskar Systems Ltd.: 10%
Establishment   April 2002


Outline of Toyota Kirloskar Auto Parts Pvt Ltd Plants (as of July 2011)

   Current   Planned
Plant name   3 Unit/Transmission Plant   Transmission Plant   Engine Plant

Annual production lineup
(annual capacity)   IMV Series   Etios/Etios Liva
   Front and rear axles/ propeller shafts
(52,000)
   Manual transmissions
(170,000)   Announced July 6, 2010   Gasoline engine aluminum casting and machining
(—)
         Transmissions (240,000)   Gasoline engines
(100,000)   
               
Investment   ―   Approx. Rs 500 crores    Approx. Rs 750 crores
Start of production   July 2002   Early 2013   Third Quarter of  2012   Early 2014
Employees   Approx. 900   Approx. 500 new   (Planned hiring)
Site area   200,000 m2

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