Toyota Kirloskar Motors is gearing up to make India its export hub for small cars by 2012.
The company has outlined an investment outlay worth Rs. 2,400-2,500 Crore and is currently holding talks with many banks such as State Bank of India, ICICI Bank Ltd, HDFC Bank Ltd and Hong Kong and Shanghai Banking Corp. Ltd to raise Rs.900 Crore between April and December 2010. It has been revealed that the remaining amount will be funded from internal accruals, which currently stand at Rs.1,600 Crore.
The Indian arm of Toyota Motor Corporation has said that though its Rs. 3,200 Crore investment plans are on track, it is resorting to various innovative measures to save costs and control investments, which will bring down the total outlay by 25 per cent to Rs. 2,400-2,500 Crore.
Toyota Motor Corporation is also believed to be in talks with a number of its component suppliers to reduce investment on its upcoming small car by providing comparatively cheaper inputs. The compact car will have a localisation of 65 per cent initially and would be scaled up further to 90 per cent by 2011. The company is looking at expanding dealer network to 150 by the end of 2010. The company may also build a powertrain facility that would be dedicated to producing engines and gearboxes for the compact car.
It may be recalled that the company had earlier scaled down the initial production volume of the proposed small car to be rolled out from its new facility to 70,000 units from 1 lakh units announced a year earlier. However, with the small car coming in either at the end of 2010 or by the beginning of 2011, it hopes to treble its sales within the next three years.