Toyota Kirloskar earmarks Rs. 1,650 crore for expansion

Buoyed by the overwhelming response to its entry-level Etios sedan and Etios Liva hatchback, Toyota Kirloskar Motor (TKM) has announced an investment of Rs. 1,650 crore to ramp up the output capacity of both its plants by 1 lakh units and for further localisation of components by 2014. Out of the total amount, the Indian arm of the Toyota Motor Corporation will increase of its production capacity to 310,000 units by 2013. The expansion will come with an investment of around Rs. 900 crore and generation of new employment opportunities. In its other joint venture, Toyota Kirloskar Auto Parts (TKAP), it will invest Rs. 750 crore to set up new aluminium casting and machining lines and will commence building engines for the Etios sedan and the Etios Liva by of 2012-13. It may be recalled that the company had earlier announced its plan to expand the annual production capacity from 150,000 units to 210,000 units by first half of 2012. With the fresh investment, the production capacity at first plant will be enhanced from 90,000 units to 1 lakh units, while the output at the other plant will be increased to 2.1 lakh units from 1.2 lakh units. While the first plant rolls out the Innova MPV and the Fortuner SUV, the second one produces the Etios, the Corolla Altis and the Etios Liva,. Commenting on the localization project in India, 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 localisation project is vital to provide best quality product at a competitive price”. Commenting on the expansion of Toyota in India, 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 4,000 bookings for Etios Liva so far.”