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Toyota Kirloskar Motor to invest Rs 300 cr for capacity expansion
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Written by Arjun   
Thursday, 17 March 2011

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Bangalore: Toyota Kirloskar Motor (TKM) plans to invest Rs 300 crore to ramp up annual production capacity at it's 2 units in Bangalore from 1,50,000 units to 2, 10,000 units. The expansion will be carried out in a phased manner starting in July 2011, extending into the second quarter of 2012.

In order to reduce the waiting period for the Etios, the company recently announced its plans for the introduction of second shift production in April, reduction in takt time (production time per vehicle) and production enhancement.

The annual production capacity of the first plant, currently manufacturing the Innova, Corolla Altis and Fortuner, will be increased from 80,000 units to 90,000 units in the third quarter of 2011.

The second plant, which commenced production in December 2010, currently manufactures the Etios. To cater to the increasing demand for Etios and with a view to reduce the waiting period, the annual production capacity for the second plant will be raised from 70,000 to 1,20,000 units. The 1,20,000 units will also include 20,000 units of the Corolla Altis, which will be shifted from the first plant to the second plant in the first half of 2012.

"The demand for the Innova and Fortuner has persistently grown in the recent months and consequently the waiting period. The huge demand for the Etios has further provided momentum to expand our production capacity. We will enhance our production capacity to cater to our customers growing demand," said Hiroshi Nakagawa, Managing Director, TKM.

"We recently announced our plans to bring down the waiting period for the Etios, which included  enhancing production and deferring the launch of the hatchback Etios Liva. This  production expansion will further our aim to bring down the waiting period," said Sandeep Singh, Deputy Managing Director, Marketing, TKM.

The Etios Liva will be launched in June 2011.

 
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