Japanese car giant Toyota on Wednesday announced an investment of nearly Rs 1,650 crore to ramp up the production capacity of its Indian operations by one lakh units and for increasing localisation of components by 2014.
The company, which is present in India through a joint venture with the Kirloskar Group, will invest Rs 898 crore to expand the production capacity of the two plants by 2013. Another group firm will put in an additional Rs 750 crore to set up aluminum casting and machining lines by 2014.
“Toyota Kirloskar Motor (TKM) today announced a further increase of its production capacity to 3,10,000 units by 2013. The expansion will come with an investment of Rs 898 crore approximately and generation of new employment opportunities,” the company said in a statement.
The production capacity at the first plant will be enhanced from 90,000 units to 1,00,000 units, while the output at the second plant will be increased to 2,10,000 units from 1,20,000 units, it added.
TKM is at present expanding the capacity at the two facilities in Bangalore to 2.1 lakh units from 1.5 lakh units by 2012. The first plant will manufacture multi-purpose vehicle Innova and sports utility vehicle Fortuner. The second plant will roll out sedans Etios and Corolla Altis and hatchback Liva, the company said.
Commenting on development, TKM Managing Director Hiroshi Nakagawa said: “In line with the growing demand for our vehicles, we have decided to further expand production. The demand for Etios and Etios Liva has been encouraging and we are gearing up to cater to a larger number of customers.”
The company had last month launched the small car Liva and it has so far received booking orders for 4,000 units. The sedan Etios was launched in December last year and received a good response from the market, forcing the company to expand its capacity earlier than planned.
TKM also said it will increase the localisation of components of the Etios and Liva, with Toyota Kirloskar Auto Parts Pvt Ltd (TKAP) planning to install and commission aluminum casting and machining lines by early 2014.
“The installation will see an additional investment of Rs 750 crore approximately and generation of new employment opportunities,” it added.