Saturday, August 25, 2012
By Pawan Rana
Toyota to ramp up production to meet rising demand for its cars in India
Toyota India that is in joint venture in the country with Kirloskar India is on an expansion spree. The car maker will be pumping in additional Rs 900 crore in order to step up Toyota cars production by 1 lakh. This seems to be the direct result of the increase in the domestic sales and export of Toyota Etios and Toyota Etios Liva hatchback. Recently, the car maker has increased the capacity of its plant to produce engine and transmission for the Etios and Etios Liva. As per the sources information the said amount will be spent in the upgradation of the production capacity of the Bidadi and Bangalore plants of the Japanese car maker. Meanwhile, the car maker has recently launched the new Camry with a price tag of Rs 23.8 lakh.
Notably, the car maker produces Toyota Innova and Fortuner SUV at the Bidadi plant and the existing capacity of the plant is 90,000 cars. This plant will be able to produce an additional 10,000 cars after the said expansion. Meanwhile, the second plant is producing an array of Toyota cars including the Toyota Corolla, Etios, Etios Liva and new Camry that has just arrived is also assembled at this plant. This plant has an annual capacity of 1.20 lakh cars and after the investment, the plant will be able to produce 90,000 more cars. The investment will be made in a phased manner and post that the production will see a surge.
Toyota cars are no doubt among the most trusted cars in India and just as the Toyota Qualis was known for its dependability and just as the Toyota Innova is known for the same today, the demand for cars by this Japanese car maker will be on the high. The expansion is also commensurate with the sale of Toyota cars in India that remained around 1.11 lakh from January till July and it is whooping 57 percent more than the last year. Toyota aims to sell 1.8 lakh cars this year.