Toyota thinks over minimizing cost, changed sourcing plans

Rupee fluctuation against other currencies in the last few months has forced Toyota to change sourcing plans for its upcoming small car plant in India. The world’s largest carmaker, which is present in India through a joint venture with Kirloskar Group, has decided to import equipment and components from countries that would offer materials at lower cost. Toyota Kirloskar Motor (TKM) Whole-Time Director Shekar Viswanathan said, Depreciation of rupee (particularly against dollar) has been affecting us badly. We are doing a lot of research on what equipment to bring and how to install them in order to minimize the cost ... for that we have canceled some decisions and implemented some new.” He, however, declined to specify which would be the new country from where TKM would import major portion of its requirements saying the company was in the process of finalizing the import source.