Toyota Kirloskar Auto Parts Pvt. Ltd. (TKAP) which is a joint venture between Toyota Motor Corporation, Japan (TMC), Toyota Industries Corporation, Japan (TICO) and Kirloskar Systems Limited, Bangalore, at an official ceremony held in Bangalore, has announced the inauguration of the TKAP engine and transmission plant for their budget offering, the Etios. The inauguration took place at the company’s current facility which is situated on the outskirts of Bangalore at Bidadi.
Shri. Murugesh R. Nirani, Hon’ble Minister Medium & Large Industries, Govt. of Karnataka was the one to unveiled the commemorative stone amidst the top-guns of the company and the state. Mr. Vikram Kirloskar, Vice Chairman, TKM stated that, “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 (petrol) 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%.” Bottom-line, the Etios and Etios Liva are all set to get cheaper.
And that is not all. The company also takes pride in stating the fact that the new plant’s starting up would result in an employment opportunities for some 500 odd people in the region. The suppliers would benefit directly from this and there would also be generation of indirect employment as a result of increased supplier support to Toyota. The company has invested an amount close to Rs.500 crores in the new production at the plant. The engine plant became operational in August 2012 and has an annual capacity of 1,08,000 units.
The transmission plant is operational since January 2013 and has annual capacity of 2,40,000 units. TKAP also manufactures R-Type manual transmissions which are meant for exports to Thailand and Argentina and also for use in the Fortuner in the country. TKAP also manufactures the axles and propeller shafts for the country’s number one MUV, Innova. The localized production of the engines and transmissions in the country for the Etios and Liva will help Toyota lower the price of the cars and attract a lot more customers to the Toyota showrooms.