Japanese auto giant Toyota Kirloskar Motor on Friday announced a 70% cut in production in its two plants in India as manufacturing would be suspended on two days every week starting this Monday.
The suspension, which will be in force for the whole of May till June 4, has been necessitated due to component supply constraints from Japan in the aftermath of the March 11 earthquake. Similar production cuts have been announced in Japan, China, North America and Europe.
“This is a necessary response to a short-term supply issue and we intend to restore normal operations as soon as possible,” said Hiroshi Nakagawa, managing director, TKML “Our focus is on ensuring optimum stock management to reduce the impact on our customers from the immediate production shortfall.”
Parent firm, Toyota Motor Corp in Japan said its factories there were expected to return to full capacity only by the end of this year though output would start to pcik up by June in Japan and by August in overseas markets. The firm, the biggest in the business in the world, stands to lose production of 500,000 cars during this process worldwide.
Toyota is slated to launch its small car Liva in India by the end of June, and had also announced ramping up of production from 150,000 units to 210,000 units last month, both of which, the firm said remained on track.
It could not be ascertained the quantum of loss of production for the firm in India. Toyota’s twin plants operate six days a week but with suspension of operations every Monday and Friday, there would be no production on Saturday as well.
The two other big Japanese carmakers in India, market leader Maruti Suzuki and Honda Siel have not announced any such production cut so far with the former stating that such a measure in India was highly unlikely. Honda Siel said it was still evaluating the situation.