Toyota Kirloskar Auto starts engine plant construction

| Updated on: Feb 24, 2011

Rs 500-cr Bidadi plant to make engines for Etios

Toyota Kirloskar Motor (TKM) announced on Thursday that Toyota Kirloskar Auto Parts (TKAP) has started the construction of its Rs 500-crore engine plant and the expansion of its existing transmission plant at Bidadi near Bangalore.

Toyota Kirloskar Auto Parts is a joint venture between Toyota Motor Corporation, Toyota Industries Corporation, and Kirloskar Systems Ltd, Bangalore.

The unit localisation project for the Etios, the compact car of TKM, involves setting up a new engine plant and expanding the existing transmission plant, which is an export oriented unit.

The new production at the plant, involving an investment of around Rs 500 crore, was one of the projects cleared by the State High Level Clearance Committee, Karnataka Government at its meeting recently.

Around 1 lakh engines will be produced a year starting in the third quarter of 2012 and around 2.4 lakh transmissions a year starting in early 2013.

TKAP currently produces manual transmissions for the Fortuner manufactured in India, Thailand and Argentina. It also produces axles and propeller shafts for the multi-purpose Innova, manufactured in India.

“Indian operations play a very important role in Toyota's global strategy. Making Etios exclusively for the Indian market and the localisation of engine and transmission marks an important milestone in the growth of Toyota in India. Production of engines and transmissions for the Etios will further localise parts production. With the production of these critical parts, the localisation ratio for Etios, currently around 70 per cent, is expected to cross 90 per cent,” TKM's Vice-Chairman, Mr Vikram Kirloskar, said in a statement.

The TKAP Managing Director, Mr Hisashi Suzuki, said this project will help generate additional employment for more than 500 members at TKAP.

“It will also additionally, create opportunities for indirect employment in our supplier fraternity. TKAP, an EOU, will now contribute towards localisation and will get an opportunity to serve customers in India.”

Published on February 24, 2011

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