New Delhi :Encouraged by the response to its entry-level Etios sedan and its first hatchback in India, the Etios Liva, Toyota Kirloskar Motor Pvt. Ltd (TKM) on Wednesday said that it will increase capacity at its plants in Bangalore to 310,000 units by 2013 from 210,000 units currently.
The expansion will require an investment of Rs 898 crore, the company said in a release. It will also increase the localisation of recently launched models by manufacturing certain critical components in India.
“We are now preparing to cater to increasing demand and are working on the expansion of Toyota in India,” said Vikram Kirloskar, vice chairman, TKM. “Etios and Etios Liva have been designed specifically for the Indian market. The localisation project is vital to provide best quality product at a competitive price.”
The company has received more than 4,000 bookings for the Etios Liva, which was launched a month back.
The production capacity at one plant will be enhanced from 90,000 units to 1 lakh units, while the output at the other plant will be increased to 2.1 lakh units from 1.2 lakh units.
The first plant makes the Innova multi-purpose vehicle and the Fortuner sports utility vehicle. The second plant makes the Etios, the Corolla Altis and the Etios Liva, the company said.
Subsidiary Toyota Kirloskar Auto Parts Pvt. Ltd (TKAP) will install aluminium casting and machining lines at its plants to save costs. The local production of more components will commence early 2014 and will require an an additional investment of Rs750 crore, the company said.
In addition to engines, TKAP is scheduled to start producing transmissions for the Etios and the Etios Liva in early 2013. The company is also planning the export of transmissions, it said.
TKAP serves as a production and supply base for manual transmissions for the IMV vehicle series made in India, Thailand and Argentina.