Bangalore: Toyota Kirloskar Motor (TKM) recently launched the Etios Sedan, marking the company's entry into the highly competitive B Segment in India. TKM will be launching the hatchback Etios Liva next April.
Currently about 70 per cent of the components of Etios are locally sourced. Only critical components like engines and transmissions are imported from Japan and Thailand. "By 2012, we will shift the engine production to India followed by the transmission in 2014," said Hiroshi Nakagawa, Managing Director, TKM.
This will take the localisation level up to 90 percent.
TKM will set up an engine plant with a capacity of 100,000 units per annum and a transmission plant with a capacity of 240,000 units per annum at an investment of Rs. 5 billion. The engine plant is expected to be operational by 2012 and the transmission plant in 2014. These new plants will primarily cater to domestic requirements.
The company has invested Rs3,200 crore to set up the second manufacturing plant as well as develop Etios for both Indian and world markets.
"We have recently increased our production capacity in the first plant. With the commencement of our second plant with an annual capacity of 70,000 units, we are looking at total sales in excess of 150,000 units next year. Half of the targeted sales will come from our new ‘B’ segment car, Etios," said Sandeep Singh, deputy Managing Director of TKM.
The company is confident of selling 70,000 units of its Etios models in 2011.
The Etios was launched by Mr. Akio Toyoda, President of Toyota Motor Corporation and scion of Toyota's founding family, on his maiden visit to India after taking over as the Head of the company. Also present were Mr. Akira Okabe (Senior Managing Director, TMC), Mr. Soichiro Okudaira (Managing Officer, TMC), Mr. Osamu Nagata (Managing Officer, TMC), Mr. Yoshinori Noritake (Chief Engineer - Etios, TMC), Mr. Vikram Kirloskar (Vice Chairman, TKM), Mr. Hiroshi Nakagawa (Managing Director, TKM) and Mr. Sandeep Singh (Deputy Managing Director-Marketing, TKM).
"India is a key market for our overall strategic growth plans, and the launch of the Etios is definitely a milestone not only for Toyota in India but for Toyota globally," said Akio Toyoda, President TMC.
"Earlier this year we announced our plans to locally produce engines and transmissions at the Toyota Kirloskar Auto Parts in the third quarter of 2012 that will help us increase the localisation content of the Etios." said Hiroshi Nakagawa, MD TKM. |
