Toyota to build engines for Etios

Toyota Kirloskar Auto Parts Private Limited (TKAP), a joint venture between Toyota Motor Corporation (TMC), Toyota Industries and Kirloskar Group, is setting up a new plant for the purpose, which would become fully functional by 2012.

The new production line represents an investment of around Rs 500 crore and TKAP would commence production of approximately 1,00,000 engines a year, starting third quarter of 2012 and roughly 2,40,000 transmissions a year, starting early 2013. The company plans to hire 500 personnel for the plant. The existing plant of TKAP produces R-type manual transmissions for Fortuner manufactured in India, Thailand and Argentina. It also produces axles and propeller shafts for Innova, manufactured in the country. With the second plant, the company aims at localising parts production, by producing engines and transmissions for Etios.

Talking to the media, TKM Managing Director Hiroshi Nakagawa said “The domestic production of engines and transmission will enable us to provide best quality car at a competetive price.” The engines and parts for Etios would be manufactured in Japan till the plant is operational.

TKAP Managing Director Hisashi Suzuki said “with the addition of two new products, we will contribute towards employment of local labour, develop local suppliers, showcase India and delight our customers in India.”