The Hindu Business Line : Toyota open to using India as overseas production base

Tokyo, Oct. 26 Toyota Motor Corporation (TMC) has said a fluctuating dollar could prompt the automaker to use India as an overseas production base but wanted the country to become more stable.

The TMC Executive Vice-President for global planning operations, overseas, Mr Tokuichi Uranishi, told Business Line that India needs to become more politically and economically stable for the automaker to use India as a sourcing base for its models to be sold overseas.

“I think stability needs more improvement,” Mr Uranishi said.

He, however, admitted that a strong currency and as a low-cost country, India provides a very good option for the carmaker to use it as a sourcing base.

He said Toyota looks at cost, quality and stability in the region for it to put up a manufacturing centre for an overseas production base. “We sell cars as a Toyota product and hence we put a premium on quality,” Mr Uranishi said.

He said Toyota cars are not sold on the basis of the location of the plant where they are built but as a product from the automaker. Hence, it was necessary that the location conforms to the norms set out by Toyota.

IMV platform

He said the company’s joint venture partner in India is working on a few models which could come out of the International Multipurpose Vehicle (IMV) platform. “We are trying to finetune the product for the Indian market,” he said.

The new product could come out soon. The IMV platform is being currently used to produce the Innova car. It can also be used to build a mini van.

He said Toyota was keen on launching Lexus in India but the Government should re-examine its import norms for completely built units.

“India needs to relax its norms for importing vehicles and only then can we look at bringing Lexus to India,” Mr Uranishi said.

The TMC Executive Vice-President for production, Mr Takeshi Uchiyamada, said once the production volume goes up in India, the company will increase the automation of the plant in the country.