Toyota Motors to enhance capacity of its Indian arm

The Japanese auto giant Toyota Motors Corp (TMC), is planning big for its Indian subsidiary as a total investment of Rs 300 crore is planned for this segment. The investment is made in order to strengthen its Indian subsidiary by 60,000 units in the year 2012. Toyota Kirloskar Motors (TKM), is the subsidiary of Toyota Motors Corp in Indian auto market and its existence is through a local partner Kirloskar Motors. The company is intending to enhance the capacity of company’s plant at Bangalore to 2.1 lakh units with a view to meet the rising demands of Toyota cars in this market.

Addressing the issue, TKM's MD Hiroshi Nakagawa has commented that the company is planning to expand gradually which will help the company in meeting the rising demands. He also stated that the major portion of this enhancement will be focused on its newly introduced compact sedan, Toyota Etios as it has been attracting great demand in Indian auto market. The capacity expansion will also focus on the upcoming hatchback version of the same, Toyota Etios Liva. He also commented that if this expansion is still not able to meet the demand completely then the company will further invest in the Indian auto market. Toyota is now turning towards the developing markets and this huge investment is one good initiative taken by the Japanese auto major to trap on of the largest developing auto markets on globe.

The company is planning to expand its operations to Asia and thus car ve out larger sales from such markets. Toyota Motors is the largest auto company on globe in terms of sale and with that the company is expecting to carve out a total of 50% market sales from Russia, Brazil, China and India. Nakagawa has also commented that the huge booking backlog for its latest launched Toyota Etios and other car models has stretched up to 6 months and the expansion will help reduce it.

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