The world’s largest carmaker Toyota Motor on Tuesday announced a Rs 500-crore investment to produce engines and transmissions for its upcoming small car Etios. The investment will be made by its subsidiary Toyota Kirloskar Auto Parts Ltd (TKAP).
“Though TKAP is more of a global source for R-type manual transmissions, with the addition of these two new products, we will continue more towards employment of local labour and develop local suppliers,” said Hisashi Suzuki, managing director, TKAP.
With this new investment, 100,000 engines will be produced locally starting in the third quarter of 2012 while around 240,000 transmissions would be produced annually from early 2013. The plant would employ around 500 new employees.
“The Etios has been designed specifically for the Indian market and domestic production of engines and transmission will enable us to provide the best quality product at a competitive price,” said Hiroshi Nakagawa, managing director, Toyota Kirloskar Motor.
The company has showcased the Etios and a sedan version based on it for the first time during the Delhi Auto Expo earlier this year and the production of the car is slated to begin later this year.
The car will be produced in Toyota’s second plant with an initial capacity of 70,000 units per annum.
“The intention is to localise the production of the car as much as possible,” said a company spokesperson.