The Hindu Business Line : Toyota Kirloskar Auto gears up for global entry

THE excitement is almost palpable at Toyota Kirloskar Motor's (TKM) plant at Bidadi near Bangalore. The countdown for the D-day when the Indian operations will be integrated into Toyota's new global sourcing strategy has begun.

Starting next month, Toyota Kirloskar Auto Parts (TKAP), which is situated adjacent to TKM's main assembly plant in Bidadi, will start supplying gearboxes to the parent company as part of a new global network of component-manufacturing subsidiaries.

The reason for the upbeat mood in Toyota's plant near Bangalore is quite understandable. TKAP will be Toyota's global supplier of the R-type manual transmission that will be used on vehicles manufactured on a brand new platform that Toyota is currently testing. The gearboxes manufactured at the plant in Bidadi will be shipped to all the countries in Toyota's network that launch vehicles from the new platform.

TKAP is a joint venture between Toyota Motor Corporation (TMC) holding 64 per cent, Toyota Industries holding 26 per cent and the Kirloskar Group holding the remaining 10 per cent. The Indian operation joins a select group of Toyota manufacturing bases in the Asean region, South Africa and Argentina that will together manufacture components and vehicles for supply to countries in Europe, Asia, and Central and South America.

Called the IMV-Project by Toyota, this is an attempt at setting up an internationally co-ordinated production system by designating manufacturing bases in India and South-East Asian countries such as Thailand, Indonesia, Malaysia, the Philippines, and Vietnam. The new global sourcing and component supply network is aimed at leveraging the locational advantages and regional manufacturing strengths in the countries, which are part of the network to improve cost efficiencies for Toyota's new vehicle platform.

The new platform that is under development will enable Toyota to manufacture vehicles such as a pick-up truck, multi-purpose vehicle or other utility vehicle and even a small car. TKAP is expected to commence production of the R-type manual gearbox by mid-May. Speaking to Business Line, Mr A. Toyashima, Managing Director of TKM, said that Toyota would look at sourcing automotive hardware such as forged parts, metal components and sub-assemblies from the Indian operations. Sourcing software from India could be another possibility that Toyota will explore, he added. The plan to manufacture manual transmissions at TKAP for Toyota's requirements of this gearbox type is in keeping with this strategy.

In the future, Toyota may also look at using the IMV project network for sourcing components that will be used in products that may be launched in India. The new sourcing structure will enable Toyota's production facilities in India and the Asean region to mutually complement one another. The plans also include stepping up the production capacity in Thailand for diesel engines and in Indonesia for gasoline engines.

The decision to source exclusively from India for a critical component like gearboxes is being considered significant given Toyota's obsession with quality in products and processes. TKM and TKAP officials are hoping that this is the harbinger for more to come.

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