The Hindu Business Line : To expand production capacity — Toyota Kirloskar to invest Rs 160 cr

Mr A. Toyoshima, Managing Director, Toyota Kirloskar Motor; flanked by Mr K.K. Swamy (left), Dy. Managing Director; and Mr Ajit Narain, Managing Director, Iffco Tokio General Insurance, at a press conference in the Capital on Thursday. - Ramesh Sharma

New Delhi , Aug. 12

TOYOTA Kirloskar Motor will be investing Rs 160 crore this year to augment production capacity. The company said that it expects profits to remain almost flat at Rs 109 crore during 2004-05 due to higher pressure on margins. The company is targeting a sales turnover of Rs 3,100 crore this fiscal, up from Rs 2,700 crore last year.

"We have earmarked Rs 160 crore for increasing production to 60,000 units by the year-end from the current 45,000 units. Our profit may remain nearly the same, largely due to the rise in steel price and the imposition of the 2 per cent cess for education," said the Deputy Managing Director, Mr K.K. Swamy.

The increase in capacity will allow Toyota to end the two to three-weeklong waiting period for the Qualis and the Corolla.

The company, which is currently operating at full capacity, aims to post sales growth of over 7 per cent this fiscal at 45,500 units over 42,600 units sold during 2003-04.

Out of the 45,500 units it aims to sell this year, the Qualis will contribute 32,000 units, the Corolla 12,200 units and the Camry 1,500 units.

During 2003-04, the company sold about 32,000 units of the Qualis, 9,500 units of the Corolla and 1,100 units of the Camry.

The company also plans to wipe out its accumulated losses in the next two years.

Toyota Kirloskar Motor, which is 74 per cent owned by Toyota Motor Corp of Japan, is bullish about the Indian market.

"We aim to have 10 per cent market share in the Indian car industry by 2010. However, we will require to have more volume models in our portfolio before we can achieve that sort of market share," said the Managing Director, Mr A. Toyoshima.

However, he refused to give details on the future line-up.

Tie-up with Iffco Tokio: Meanwhile, the company announced today that it has entered into an agreement with Iffco-Tokio General Insurance to provide cashless insurance service to customers.

Customers would now be able to undertake cashless repairs of insured vehicles and spare parts at Toyota dealerships, Mr Toyoshima told newspersons.