Toyota Motor Corporation (TMC) is looking at expanding the capacities of its two joint venture units in India – passenger car manufacturer Toyota Kirloskar Motor (TKM) and the export-oriented component unit Toyota Kirloskar Auto Parts (TKAP).
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Toyota, which holds a 99% stake in TKM, has invested around INR9 billion in the car plant at Bidadi, near Bangalore.
But the immediate focus will be on expanding capacity at TKAP, which manufactures gearboxes. In the first full year of operations to June 2005, TKAP exports to export 160,000 transmissions for Toyota’s international IMV vehicle programme – it supplies all the manual gearboxes.
According to TKM, the Indian passenger car market is set to reach two million by 2010, rising to four million by 2015. The car maker wants to increase its market share from the present 50,000 units a year (5%) to 200,000 by 2010, and on to 600,000 (15%) by 2015, and to achieve that it needs to increase both production capacity and its model range.
TKM currently builds Toyota’s Camry, Corolla and recently launched Innova models in India. The Innova has attracted an order bank of 10,000 so far but the company can build only 4,600 to 4,800 units a month, hence the current waiting list. The model line has 70% local content.
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By GlobalDataTKM also plans to introduce a small car in India, with 100% local content. It wants to sell around 100,000-150,000 a year.
Deepesh Rathore / Tilak Swarup
