Toyota Inaugurates Gasoline Engine & Transmission Plant in Bidadi


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Toyota Kirloskar Auto Parts is setting up its third manufacturing plant for automotive components at Bidadi, about 32 km from Bangalore. The company is investing Rs 500 crore to set up the plant.

Toyota Kirloskar Auto Parts is a joint venture between Toyota Motor Corporation, Japan, Toyota Industries Corporation, Japan, and Kirloskar Systems, Bangalore. The Toyota group holds 90 per cent stake in the company, which already operates two manufacturing plants at Bidadi — for exports, as well as the domestic market. At these plants, the company manufactures manual transmissions for ‘Fortuner’ units manufactured in India, Thailand and Argentina. It also produces front and rear axles and propeller shafts for the ‘Innova’ units made in India.

According to an official notification issued by the Karnataka government, a high-level clearance committee, headed by Chief Minister D V Sadananda Gowda, had recently approved the company’s proposal to set up a third plant to manufacture castings and machine parts, the memorandum of understanding (MoU) for which was signed at the Global Investors’ Meet in Bangalore on June 7 and 8.

With the fresh investment, which would create 150 jobs in Bangalore, total investment in the company would rise to Rs 1,000 crore.

At the proposed plant, Toyota Kirloskar Auto Parts plans to manufacture 240,000 castings of engine parts and 120,000 units of machine parts. The company has sought an additional 17 acres from the government. The Karnataka Industrial Areas Development Board would acquire the land for the company, provided the company secures consent for this from 80 per cent of farmers who own the land. The board has also sanctioned 6,00,000 litres of water a day for the new plant.

“We have signed an MoU with the state government for an investment of Rs 500 crore for the new capacity. As part of the new investment, we would manufacture petrol engine parts and transmission units for Toyota’s small car, the Etios Liva, and the Etios sedan. We will export 55 per cent of the 2,40,000 transmission units to Toyota’s Brazil facility, while the remaining 45 per cent would be used for domestic consumption,” T R Parasuraman, senior vice-president (administration, finance and human resources) told Business Standard.

Toyota Kirloskar Auto Parts has about 50 acres adjacent to the Toyota car plant at Bidadi. In the export-oriented first unit here, the company
manufactures 1,80,000 units of R-Type transmissions a year. The company’s axle plant, where it manufactures front and rear axles and propeller shafts for the Innova, has a capacity of 75,000 units a year. As a part of the company’s localisation project, the new plant would manufacture engines and expand its export-oriented unit to supply transmissions for the Etios. Production of transmissions for the Etios and Etios Liva models is scheduled to start by early 2013.

A senior company official said the new plant would start producing engines for the Etios and the Etios Liva by end of July or early August.
Two years ago, Toyota Kirloskar Auto Parts had announced the setting up of an engine plant, as well as the expansion of its export-oriented unit for transmissions.

The company serves as a production and supply base for manual transmissions for Toyota’s international multi-purpose vehicle series vehicles to India, Thailand and Argentina.
 
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Re: Toyota Kirloskar To Set Up 3rd Plant in Bangalore

hmm its gonna be only parts manufacture plan right?? well liva sales are going southwards. they better start thinking on it now!
 
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Re: Toyota Kirloskar To Set Up 3rd Plant in Bangalore

Even i was very surprised to hear this news as both etios brother's sales are shrinking on top of it the whole market is slowing down and also Toyota does not intend to launch any new product for quite some time.
 
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Toyota Technical Training Institute (TTTI) today conferred academic degrees to 63 students – the third batch - on the successful completion of its 3 year training course (2009-2012). The convocation ceremony was graced by Mrs. Sudha Murthy, Chairperson, Infosys Foundation She toured the facilities at the institute and also spent time interacting with the students.
The first batch was conferred upon their academic degrees in 2010 in the gracious presence of Dr. Abdul Kalam, Former President of India. All the students of that batch have been inducted at Toyota Kirloskar Motor. The learning programme at TTTI trains the students to be skilled technicians in auto manufacturing and plant administration thereby increasing their employment prospects. The academic course consists of a comprehensive, full time training in the following trades - Automobile Assembly, Automobile Paint, Automobile Weld and Mechatronics (a combination of mechanical and industrial electronics). The courses involve training at TKM plant where students are exposed to the practical experience of applying the world renowned Toyota Production System to the various manufacturing processes.

The curriculum is designed to be a complete learning experience, with basic subjects and recreational activities, being included in addition to imparting knowledge on automobile manufacturing. The purpose of this technical training institute is to offer students an opportunity to acquire special skills of “Monozukuri” (“skilled manufacturing”). TTTI was established in 2007 as a part of TKM’s social initiatives.TTTI trains students from economically poor backgrounds, coming from various parts of rural Karanataka, who have the talent but cannot opt for higher education. The institute is a fully residential school providing education free-of-cost to the students. The students are also given a stipend. The deserving students receive fellowships in addition to the stipend. 56 percent of the students received fellowships for academic excellence this year. The institute not only trains students to be skilled workers, but also focuses on nurturing them to be good citizen of the country.

TTTI currently has 192students. Additionally, 64 students have been selected from the 3000 applications, received this year. Furthermore, TKM will encourage potential graduates of Toyota Technical Training Institute to join the company as Team Members. “TTTI was established with the goal of offering underprivileged students the opportunity to acquire specialized skills in manufacturing. This also helps ensure that TTTI will prove to be a primary source of human resources for local production, with skilled graduates of TTTI going on to work at Toyota Kirloskar Motor Private Limited or any other manufacturing company of their choice,” said Vikram Kirloskar, Vice Chairman, Toyota Kirloskar Motor.

“This is the third batch graduating from TTTI. All the students of the first and second batch have already joined us and are doing very well on the job. We wish these talented students contribute to the society through manufacture of automobiles and hope that these bright young minds will not only make good cars but also become good citizens of the society,” said Hiroshi Nakagawa, Managing Director, Toyota Kirloskar Motor.
 
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Re: Toyota Kirloskar To Set Up 3rd Plant in Bangalore

Interview with Mr Sandeep Singh, Deputy Managing Director (Marketing), of Toyota Kirloskar Motor

Read more: Official - Toyota Camry launches on August 24 in India

IAB: You had told us in April that the new Toyota Camry will be out in August, do you have a specific date to share today?
Mr Singh: On 24th August, we will launch the Camry.

IAB: We saw an Etios special edition launch shortly after Aero Altis special edition. Following these, can we something with respect to the Innova or other products?
Mr Singh: Yes, you see we have launched the Liva limited edition (Liva TRD Sportivo edition), you are going to see an Innova limited edition in the month of September and then you will see the Etios (sedan) limited edition. Hopefully we are working on a Fortuner limited edition also. So you could see all the limited editions in this year.
And as you know the Liva TRD, we have already launched. The Altis Aero is also doing very well.

IAB: Considering the fact that the next generation IMV products are at least three-four years down the line, the next generation Corolla is also sometime away and all the current products have been updated, will 2013 be a relatively free year and give you time to launch the Lexus brand?
Mr Singh: No, for Lexus we are still doing a feasibility study, the rupee depreciation and increase in custom duties has put lot of question mark on when do we launch. So that’s what we are looking at and I cannot give you any time-frame at this moment.
Indian Autos Blog is expecting the Aero Limited Edition of Innova and Fortuner followed by the launch of the TRD Sportivo version of the Etios sedan by November 2012.


Read more: Official - Toyota Camry launches on August 24 in India
 
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With demand increasing for diesel-powered vehicles and almost 80% of its sales coming from vehicles powered by this fuel, Japanese carmaker Toyota is considering setting up a new diesel engine facility to cater to the Indian market.

Toyota owns 89% in the Indian joint venture, Toyota Kirloskar Motor's (TKM). Its plans to set up a diesel engine plant has been delayed by the lack of clarity in pricing policy of the automotive fuels by the government and uncertainty over any additional tax on diesel-fired vehicles.

TKM deputy managing director (marketing) Sandeep Singh said, at the launch of Camry in Delhi on Friday, "Indian market is dynamically shifting towards diesel cars and forms bulk of our domestic sales. We have been conducting feasibility study on the potential of diesel engines in the Indian market, but are yet to take a final decision on any such facility."

TKM is currently investing 500 crore to set up a petrol engine plant and expanding its transmissions capacity in its facility at Bidadi in Bangalore. The company's investment in a new diesel plant could be much higher. Toyota's high volume models like the Innova, Etios and Fortuner SUV are primarily diesel-powered cars. Currently, it imports all its engines from Japan and Thailand, but has been vying for a local facility to bring down costs in the light of adverse currency fluctuations and the consequent mounting of import bill.

"We have taken a huge hit on our margins with the double whammy of weakening Rupee and the strong Japanese Yen. We have plans to localise production for most of the components, but are awaiting a final nod from our headquarters in Japan," Singh added.

Toyota and other carmakers like Hyundai and Volkswagen have been considering setting up diesel engine plants for India, but have been postponing a decision because of the Indian government's lopsided stand. The union government had planned to levy additional tax on diesel passenger vehicles to discourage their sales and also prevent use of subsidised diesel fuel to luxury cars and SUV's. However, no such decision has been taken yet.

Toyota also started the production of seventh generation premium sedan Camry at Bangalore and launched the new car at an introductory price of Rs 23.80 lakh (ex-showroom Delhi). The company had been importing the car from Japan earlier and now would assemble the car to reduce the high 120% duty on imported vehicles. Camry would be available only in one automatic transmission variant that is powered by a 2.5 litre petrol dual VVT-i engine generating 181PS of power. The new Camry will compete with Honda's Accord, Volkswagen's Passat and Skoda's Superb would be sold only in petrol option.

Toyota toys with diesel engine plant to cut import costs - The Economic Times
 
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Re: Toyota Kirloskar To Set Up 3rd Plant in Bangalore

Toyota Kirloskar Motor to invest Rs 900 crore on production capacity at its Bidadi plantThe Japanese car giant Toyota which is present in Indian auto market through Toyota Kirloskar Motor (TKM) will reportedly invest Rs 900 crore in India to increase the production capacity at its Bangalore facility by March next year.
According to the media reports, the company, which is present in India through a joint venture with the Kirloskar Group, will be increasing the capacity of its plant in Bangalore to 3.1 lakh units per annum by March next year from 2.1 lakh units at present. Toyota Kirloskar Motor Vice-Chairman Vikram Kirloskar was quoted as saying “We will invest Rs 900 crore to expand the capacity of our Bangalore plant by March next year. The production capacity will increase to 3.1 lakh annually from the 2.1 lakh units at present.”

TKM Managing Director Hiroshi Nakagawa was quoted as saying “It is under discussion and we have not taken any decision yet. It will take time.’’ Last month, the company had said it was unable to convince its Japanese parent to invest on a diesel engine manufacturing plant in India due of lack of clarity in pricing policy in the country.

Toyota Kirloskar Motor to invest Rs 900 crore on production capacity at its Bidadi plant | WheelsUnplugged
 
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Re: Toyota Kirloskar To Set Up 3rd Plant in Bangalore

Toyota Motor may plan a third greenfield plant in Hosur

Toyota Motor is planning a third greenfield plant to meet any spurt in demand in coming years.

It operates a majority-owned Indian subsidiary, Toyota Kirloskar Motor Private Limited (TKM), which is looking at expanding to Hosur in Tamil Nadu. Hosur is just few kilometres away from its two current plants at Bidadi, in the suburb of Bangalore. The two plants would reach a combined capacity of 3.1 lakh cars by January 2013.

Toyota is one of the fastest-growing car companies in the otherwise slowing Indian domestic market. Its sales grew 34% to 73,148 cars in the first five months of the fiscal. The company is aiming at an annual production of around 4 lakh vehicles by 2015-16 that would take its market share to around 10%.

Toyota, which entered India a decade back, sold 1,60,203 vehicles in the previous fiscal to become India's fifth-largest carmaker. Auto sales remained subdued during these months and grew by a marginal 0.86%, the lowest in the past three years.

TKM has already made public its intention to scale investments for a new greenfield diesel plant in India after investing Rs 500 crore to set up a petrol engine plant and expanding transmissions capacity at its Bangalore facility.

The company has been vying for higher localisation through a local facility to bring down costs in the light of adverse currency fluctuations and mounting import bill for critical auto components currently shipped from Thailand and Japan.

Responding to a query on its Hosur plans, the company said: "Nothing has been decided yet" It, however, remained positive on future expansion plans depending on the expansion of the Indian market. Also, the investment plans for this proposed expansion could not be ascertained.

According to sources in the auto industry, TKM has also kept its options open in other lucrative states like Gujarat, where other automakers such as Maruti SuzukiBSE 0.44 %, Tata MotorsBSE -1.28 % and Ford have established their base.

According to sources in the automobile industry, the third plant, which could become Toyota's new production base in India, may launch operations by 2016. Commercial vehicle manufacturer Ashok LeylandBSE -0.22 % and two-wheeler maker TVS Motors have already set up manufacturing plants in this upcoming automotive hub.

"We have enough capacity to meet the domestic market demand and targeted exports to few markets like South Africa. We would like to sweat our assets before going in for any further expansion in the fast-changing Indian auto market," said a senior TKM executive, preferring not to go on record.

Toyota plans to make India an export hub for other emerging markets besides South Africa. Many carmakers like Maruti Suzuki, Hyundai and Nissan are using it to build compact cars for European, African and Middle Eastern and South East Asian countries.

Toyota Motor may plan a third greenfield plant in Hosur - The Economic Times
 
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Toyota expands plant, to add 1 lakh cars

Toyota Kirloskar Motor sales in November dipped by 26% to 10,352 units as the Japanese company reduced production this month to upgrade its factory to handle production of 100,000 additional cars from 2013. Toyota has increased capacity to make 310,000 cars from next year, up from 210,000 vehicles.

“The first plant manufacturing Innova and Fortuner was shut down for a week and the second plant manufacturing Etios, Etios Liva and Camry was shut down for a period of 15 days,” said Sandeep Singh, deputy managing director, Toyota Kirloskar Motor. “The market is yet to pick up pace. We hope to see growth next month due to the year ending sales. The market is expected to grow in the first quarter of next year.”

Toyota sales of its Innova and Fortuner increased as part of the general trend of demand for utility vehicles from customers. Innova sold 4,682 units, a 9% growth over 4308 units sold in November 2011. Fortuner sold 1,025 units. However Toyota saw a steep decline in car sales, with its flagship sedan Etios selling 4,231 units as compared to 8,271 units in November 2011. Corolla Altis and Camry sold 362 and 46 units respectively in November.

Toyota expands plant, to add 1 lakh cars | wheelsunplugged.com
 

350Z

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Re: Toyota Kirloskar To Set Up 3rd Plant in Bangalore

Quick update – Toyota has announced new structure for the organization w.e.f 1st Jan 2013.

The main objectives of these changes are to strengthen the organization towards achieving TKM’s vision and further enhance speed of decision making.

Mr. Shekar Viswanathan, Deputy Managing Director, Commercial, has been promoted to the post of Vice Chairman, External Affairs.

Mr. Sandeep Singh, Deputy Managing Director, Sales, Marketing and Customer Service, has been promoted to the post of Deputy Managing Director and Chief Operating Officer. In his new role, he will head Sales, Marketing, Customer Service and Commercial Divisions.

Mr. Masanori Takahashi, Deputy Managing Director, Technical and Purchase, has been promoted to the post of Deputy Managing Director and Chief Operating Officer. In his new role he will head Manufacturing, Technical, Purchase and Vendor Development including supplier support.

All the above mentioned executives will continue to hold positions in the company’s Board of Directors.

Mr. Shigeru Tomonaga, currently holding the post of Deputy Managing Director, Manufacturing will be an Executive Advisor to the TKM Board of Directors and Chief of Supplier Support Center.
Drive Safe,
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Re: Toyota Kirloskar To Set Up 3rd Plant in Bangalore

Toyota Kirloskar Auto Parts Inaugurates its Gasoline Engine & Transmission Plant

Toyota Kirloskar Motor (TKM) announced today that Toyota Kirloskar Auto Parts Pvt. Ltd. (TKAP) – a joint venture between Toyota Motor Corporation, Japan (TMC), Toyota Industries Corporation, Japan (TICO) and Kirloskar Systems Limited, Bangalore, held a ceremony to officially announce the inauguration of TKAP engine and transmission plant for ETIOS. The ceremony was held at its current plant at Bidadi, on the outskirts of Bangalore.

Shri. Murugesh R. Nirani, Hon’ble Minister Medium & Large Industries, Govt. of Karnataka unveiled the commemorative stone under the august presence of many distinguished guests including Shri. R. V. Deshpande, Former KPCC President, Hon’ble former Minister for Medium & Large Industries along with Mr. Takahiro Iwase, President, Toyota Motor Asia Pacific, Thailand, Mr. Vikram Kirloskar, Vice Chairman, Toyota Kirloskar Motor, Mr. Shekar Viswanathan, Vice Chairman, Toyota Kirloskar Motor, Mr. Hiroshi Nakagawa, Managing Director, Toyota Kirloskar Motor & Mr. Yuji Hiraoka, Managing Director, Toyota Kirloskar Auto Part.

Speaking on the occasion, Mr. Vikram Kirloskar, Vice Chairman, TKM said, “Indian operations play a key role in Toyota’s global strategy and this has been reinforced by the introduction of the Etios series exclusively for the Indian market. Now with the commencement of TKAP’s engine and transmission plant, the localization of gasoline engine and transmission has marked another milestone in the growth of Toyota in India. The local production of the engine and transmissions for Etios raises the localization ratio to over 90%.”

Also addressing the function, Mr. Yuji Hiraoka, Managing Director, TKAP said, “We are very happy to announce the formal commencement of our new Engine and Transmission plant. This project has helped us generate additional employment for more than 500 members at TKAP. It has also additionally created opportunities for indirect employment in our supplier fraternity. TKAP will contribute towards localization thereby getting an opportunity to serve our customers in India better”.
The new production at the plant represents an investment of approximately Rs. 500 crores with the engine plant being operational since August 2012 and the transmission plant being operational since January 2013. The annual capacity for the engine plant is 1,08,000 units and for the transmission plant is 2,40,000 units.

TKAP also produces R –Type manual transmissions for export to Thailand & Argentina and also for the “Fortuner”, manufactured in India. It also produces axles and propeller shafts for the “Innova”, manufactured in India. Production of engines and transmissions for the Etios will further localize parts production.
 
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