Toyota Kirloskar Motors (TKM), the Indian unit of Japan based leading car maker Toyota, has reported that its auto component arm - Toyota Kirloskar Auto Parts (TKAP) – has commenced the construction of Rs 500 crore engine production plant at Bidadi near Bangalore. Moreover, the company will also be expanding its existing transmission plant at this facility.
As per the recent media reports, the company has planned a localization project for the Etios model, under which TKM will be setting-up a new engine plant along with expanding its existing transmission plant. The reports add that the new engine plant of the company will go on stream in the second half of next year with an annual production capacity of 1 lakh engines. With this, the total transmission production will be enhanced to 2.4 lakh units by early 2013.
Mr. Vikram Kirloskar, TKM's Vice-Chairman, quoted as saying in the recent media reports, “Indian operations play a very important role in Toyota's global strategy. Making Etios exclusively for the Indian market and the localization of engine and transmission marks an important milestone in the growth of Toyota in India. Production of engines and transmissions for the Etios will further localize parts production. With the production of these critical parts, the localization ratio for Etios, currently around 70 per cent, is expected to cross 90 per cent.”
