The Hindu Business Line : Toyota to increase output, expand dealer network

Mr K.K. Swamy, Deputy Managing Director, Toyota Kirloskar Motors Pvt. Ltd, talking to the service center executives of Harsha Automotive in Hyderabad on Monday. - A. Roy Chowdhury

Hyderabad , Feb. 23

EYEING 20 per cent growth in overall sales this year, Toyota-Kirloskar Motor Company, a joint venture between Toyota Motor of Japan and the Kirloskar group, has drawn up plans to expand its manufacturing facility located in Bidadi near Bangalore and increase its dealer strength from 42 now to 60.

The Deputy Managing Director of the Toyota-Kirloskar, Mr K.K. Swamy, said, "The company's current manufacturing base has a capacity to produce about 40,000 vehicles per year. We are finding it difficult to match up to the increasing demand for vehicles and there is a waitlist for some models, including the popular Toyota Qualis."

"Therefore, we are in the process of firming up plans for the expansion of the manufacturing facility. However, it is difficult to comment on the capital expenditure at this point of time. We expect to freeze plans by the end of March this year," he explained.

The company, which sold about 40,000 vehicles last year expects to end this year with total sales in excess of 48,000, an increase of about 20 per cent over last year. While Qualis would account for about 35,000 vehicles, Corolla, which has become a leader in its segment with 42 per cent market share, would contribute about 12,000 and the company's luxury sedan, Camry is set to log in about 1,200 cars. Having drawn up a long-term perspective plan that seeks to export about 10 per cent of the total output by the year 2010 which is targeted at 20,000 out of two million cars to be produced, Toyota has already managed an indigenisation level of 78 per cent in Qualis and 58 per cent in Corolla.

With regard to bringing in a diesel version of Corolla, Mr Swamy said, "We will provide whatever the customer demands. We have commissioned a feasibility study for diesel engine. However, we do not believe a Toyota Corolla customer favours a diesel option. However, if the customers demand and the report too favours this, we could well have one."

The company has thus far invested about Rs 2,300 crore in the country in phases which includes Rs 480 crore for transmission plants. These transmission plants are meant for different platforms and could well serve as a global hub for Toyota's requirements. The first batch could be moved to Thailand by July 2004 from this 100 per cent export oriented unit, he said.

Commissioning the company's 42nd dealership here at Kondapur near here — Harsha Toyota, located in one of the biggest such facility spread across 1,20,000 sq.ft, Mr Swamy said that the company plans to increase the dealership to about 60 during the year.