Toyota inaugurates petrol engine & transmission Plant

Toyota Etios Engine plant

Toyota Kirloskar Auto Parts (TKAP) – a joint venture between Toyota Motor Corporation, Japan (TMC), Toyota Industries Corporation, Japan (TICO) and Kirloskar Systems Limited, Bangalore, inaugurated the engine and transmission plant for Etios.

The Etios sedan is powered by a 1.5 petrol engine & diesel engine. At the new plant the company will initially manufacture engine & transmission for the 1.5 petrol engine. The local production of the engine and transmissions for Etios raises the localization ratio to over 90%.

Localization of petrol engine and transmission has marked another milestone in the growth of Toyota in India. The new production at the plant represents an investment of approximately Rs. 500 crores with the engine plant being operational since August 2012 and the transmission plant being operational since January 2013. The annual capacity for the engine plant is 1,08,000 units and for the transmission plant is 2,40,000 units.

TKAP also produces R –Type manual transmissions for export to Thailand & Argentina and also for the Fortuner, manufactured in India. It also produces axles and propeller shafts for the Innova, manufactured in India. Production of engines and transmissions for the Etios will further localize parts production.

Can we expect a price cut on the Etios facelift which is expected to happen in 2013? We doubt but certainly the company will not increase the price of the Etios sedan significantly.