Toyota Kirloskar Motor ramps up production to 210,000 units

Toyota Kirloskar Motor (TKM) has announced that it will be investing Rs. 300 crore to ramp up its 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 line with TKM’s increasing annual production capacity and in order to cater to the increase in demand for the Innova MPV, Fortuner SUV, Corolla Altis premium sedan and the Etios entry-level sedan, the company will enhance its output. Recently, Toyota’s Indian carmaking arm had officially announced that it will begin the second shift of its production in April and also postpone the launch of hatchback Etios Liva from April to June 2011. Furthering these measures, 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. Sandeep Singh, Deputy MD- marketing, TKM further added: “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.” Hiroshi Nakagawa, Managing Director, TKM stated, “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.” The Etios Liva will be launched in June 2011