Toyota’s Karnataka diesel engine plant to be ready by end-2016
The factory will take the local content of its popular Innova and Fortuner models to 80% from the current 50%
Toyota Kirloskar Motor Pvt. Ltd’s delayed diesel engine factory in Karnataka, on which the company is spending Rs.1,000 crore, will be ready for production by the end of 2016.
“In order to remain more sustainable and derisk ourselves from the fluctuating duty structures and rupee depreciation, we are increasing our localization levels by setting up the diesel engine plant,” chief operating officer
Sandeep Singh said.
The facility near Bangalore will be able to make 108,000 engines a year and provide employment to 550 people, Singh said on the sidelines of the launch of a new version of
Corolla Altis at the 2014 Auto Expo.
The factory will take the local content of its popular
Innova and
Fortunermodels to 80% from the current 50%.
Toyota, has been mulling to set up this diesel plant for nearly two years now since the 2012 Auto Expo, but delayed its plans as it was awaiting the government’s policy on diesel.
Singh, who is also the firm’s deputy managing director, said the auto maker has been absorbing “a lot of cost” by importing the engines for these two cars, and the factory will lead to significant savings, but declined to elaborate.
Toyota is not looking at launching any new products in the next two years, till it is able to become competitive in all its existing segments, said Singh.
The company is “studying” the fast-growing segment of sub-four meter sedans and compact sports utility vehicles, Singh said, but has no plans as yet to introduce these products.
Of the 88,947 units the company sold in the April to November period, 55% came from the Innova and the Fortuner. The company’s sales in this period fell 17%, according to industry lobby Society of Indian Automobile Manufacturers’ data.
The company will launch its
Etios Cross, a hatchback, on Thursday at the expo.