Ramanagaram, 24th Feb 2011: Toyota Kirloskar Motor (TKM) announced today that Toyota Kirloskar Auto Parts PVT. LTD. (TKAP) held a ceremony to mark the commencement of construction of its new engine plant and the expansion of its existing transmission plant at Bidadi in Ramanagaram Taluk. This development is a part of the unit localization project.
Mr. Hisashi Suzuki, Managing Director,TKAP unveiled the foundation stone under the august presence of Mr. V P Baligar, Principal Secretary, Department of Commerce and Industry and Mr. Takahiro Iwase, Senior Managing Director, TMC and Mr. Hiroshi Nakagawa, MD, TKM.
The unit localization project for Etios involves setting up a new engine plant and expanding the existing transmission plant, also an Export Orient Unit. The new production at the plant, representing an investment of approximately Rs. 5 billion. The project was cleared by the State High Level Clearance Committee, Government of Karnataka, in Jan 2011. The production will commence from third quarter of present year and approximately 100,000 engines will be producedper year. From early 2013 the capacity will be increased to 2.40 lakh transmissions.
TKAP currently produces manual transmissions for the “Fortuner” manufactured in India, Thailand and Argentina. It also produces axles and propeller shafts for the “Innova”, manufactured in India.
Talking on the occasion Mr. Vikram Kirloskar said Indian operations play a very important role in Toyota’s global strategy. Making of Etios exclusively for the Indian market and the localization 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 localize parts production. With the production of these critical parts, the localization ratio for Etios, currently around 70%, is expected to cross 90% he said.
Mr.Hisashi Suzuki in his address 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 localization and will get an opportunity to serve customers in India.”