Mumbai: Toyota Kirloskar Motor (TKM) plans to invest an additional Rs 500 crore to set up engines and transmissions plant for its Etios sedan and hatchback cars, a senior company official on Tuesday said.
“We have already invested Rs 3,200 crore to develop Etios car project. We are also investing Rs 500 crore to develop engines and transmissions for the Etios sedan and hatchback cars,” Toyota Kirloskar Motor deputy managing director (marketing) Sandeep Singh told reporters on the sidelines of Etios launch conference.
The plans to begin production of engines and transmissions at the Toyota Kirloskar Auto Parts in the third quarter of 2012 will help in increasing the localisation content of the Etios, TKM managing director Hiroshi Nakagawa said.
Currently, about 70% of the components of Etios are locally sourced. Only critical components like engines and transmissions are imported from Japan. The plan is to take the localisation level up to 90 per cent.
“By 2012, we will commence transmission production in India, followed by the engine in 2013,” Singh said.
TKM recently launched the Etios Sedan, marking the company’s entry into the highly competitive B Segment in India. TKM will launch the hatchback Etios Liva next April.
Meanwhile, the company has announced the Etios sedan’s four variants, J, G, V and VX, which are priced between Rs 4,96,330 and Rs 6,82,519 ex-showroom in Mumbai.
Toyota Etios has registered 7,086 bookings since 1 December, which includes 1,200 from Mumbai. Nearly 40% bookings are from North India, 32% from South India, Singh said, adding that initially the customers would need to wait for four months to get the delivery of the product.
Talking about the Etios’ sales and marketing strategy in India, Singh said that the company plans to enter into Tier-II cities.
Singh pointed out that the ratio of sedan sales in cities will come down to 40% from 70% at present and it will increase in semi-urban and rural areas to 60% from the present 30%.
TKM intends to double sales in India next year to 1,40,000-1,50,000 units, on the back of Etios and Liva. The company sells the sedans, Toyota Corolla Altis and Camry, along with the multi-utility vehicle Innova.