India will be manufacturing base for TMC's global operation

Toyota Motors (TMC) is trying to use all options available to make India the manufacturing base for its global operation. These change will come into play after the launch of compact car by the company. In view to enjoy duty free spares from outside, TMC eyeing on the proposed Indo-Thai free trade agreement (FTA). According to the agreement, Toyota and other car makers will be enjoying most auto-parts duty free. At present Toyota has to pay 7-10 per cent duty to assemble cars here. TMC's senior MD Dato' Akira Okabe said that the company was checking most options in front of it to make India TMC's global manufacturing hub and major changes will be seen after the launch of small car. Toyota has earmarked Rs 3,200 crore for 2008-11 to set up a second plant in Bangalore to make 2-lakh cars from the current 80,000 units. Toyota small car, scheduled for launch next year, would be exported to the overseas market to increase profitability. “Global profits of TMC is miserable but the Indian operations is quite profitable,” TKM MD Hiroshi Nakagawa said.It may be noted that Maruti has just launched Maruti Zen Estilo New and one more car is going to be launched that is Toyota Fortuner.