In yet another step as part of the company’s growth strategy in the country, Toyota Kirloskar Motor has announced that engines and transmissions for its compact car Etios will be manufactured in India .jpg) Etios, the compact car to be fabricated for the Indian market by Japanese auto giant Toyota Kirloskar Motor (TKM) will have its engine and transmissions manufactured in India itself by Toyota Kirloskar Auto Parts Pvt Ltd (TKAP). With the production of Etios slated to begin late in 2010, TKAP is expected to begin production of engines by the third quarter of 2012 and transmissions during the early parts of 2013. In this context, Hiroshi Nakagawa, MD of TKM, said to media persons, “Production of engines and transmissions in the country will help us to roll out superior quality products at competitive price points. India plays a crucial role in the company’s expansion plans and the current announcement is another step towards Toyota’s growth in the country.”
Low manufacturing cost favouring India
It is to be noted that Toyota is banking heavily on Etios to drive its sales volume in the country and is putting in a lot of effort to come out with the best product at a cost-effective price. According to Jaspal Reddy, manager of Reddy Automobiles, a Toyota dealer in Chennai, “At a time when several compact cars are flooding the Indian market, pricing plays a very critical role. With India boasting of low manufacturing costs as compared to other countries across the world, manufacturing engines and transmissions in the country will reap huge benefits for the company.”
Mr Reddy also added that the launch of Etios will further intensify competition in the compact car segment and will also lead to stiff competition for other established players in the segment such as Volkswagen Polo, Ford Figo, Chevrolet Beat etc. It is to be noted that TKM also has exclusive plans to tap the rural Indian car market and plans to sell nearly 40% of its cars to rural consumers this year.
Arup Choudhury |
