Toyota to invest $100 mn for India parts output

Toyota to invest $100 mn for India parts output

Tokyo: Toyota Motor Corp said on Tuesday it would invest about ¥9 billion ($103 million) to produce engines and transmissions for the Etios compact car in India developed for the local market.

Local unit Toyota Kirloskar Auto Parts, held 90% by the Toyota group, plans to produce 100,000 engines a year starting in the fall of 2012 and 240,000 transmissions from early 2013, Toyota said in a statement.

The move would create about 500 new jobs, it said.

Toyota is scheduled to begin building the Etios model in India in late 2010, aiming to gain a foothold in the fast-growing market by capturing a new base of price-sensitive customers.

The world’s top automaker will assemble the Etios with engines and transmissions exported from Japan until local production begins, a Toyota spokeswoman said.

Some of the 240,000 transmissions will be exported from India, she said, declining to disclose the destination.

Toyota Kirloskar Auto Parts currently produces axles, propeller shafts and manual transmissions with a workforce of about 800.