Toyota unveils auto component plant in B'lore

Wednesday, 04 August 2004, 19:30 IST
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BANGALORE: Toyota Kirloskar Auto Parts Ltd. (TKAP), a joint venture between Japan's Toyota otor Corp and Kirloskar Systems, Tuesday commissioned its modern plant here to manufacture gear boxes for global operations. The first 100 percent export-oriented unit in that sector in India, TKAP has been set up at Bidadi industrial area, about 40 km from here, with an initial investment of 2.5 billion ($53.97 million). The auto component plant was commissioned Finance Minister P. Chidambaram in the presence of Karnataka Chief Minister N. Dharam Singh, Industry Minister P.G.R. Sindhia, and Toyota Motor's senior managing director Akio Toyoda. As the first Indian company to join the club of tier-1 auto component manufacturers of Toyota, the TKAP facility will produce complete manual transmission assembly with global specifications. "The gear boxes from TKAP will be fully exported to seven TMC plants located in South America, South Africa and South East Asia, including Thailand and Indonesia," Toyoda told media persons. The plant has an installed capacity of 160,000 units per annum and a workforce of 550 people. The company has made an overall investment of 3.8 billion in setting up the plant, including the cost of 50-acre land. The commissioning of TKAP marks India's emergence as a major global hub for sourcing of auto components. For the first time, a critical component in automobiles will be exported from India. Affirming Toyota's long-term commitment to India, Toyoda said Toyota's know-how and culture of cost reduction with India's vast resources would turn the country into its top low cost manufacturing centre in the world. "Toyota Motor has chosen to source from India due to its competitive cost of manufacture, availability of abundant engineering talent, and strong indigenous machine tool," Toyoda. "India has the potential to become a global competitor among the top tier-1 suppliers." According to TKAP vice chairman Vikram Kirloskar, the TKAP's path-breaking project moves India up from commodity export to manufacturing and export of tier-1 auto component. "About 40 percent of the machines installed at the transmission plant are indigenous. We have adopted Toyota Production System and developed 13 tier-2 and 45 tier-3 suppliers to the project," said TKAP managing director Kiyomichi Ito. TKAP will supply axles and propeller shaft to Toyota Kirloskar Motor, which rolls out Qualis multi-utility vehicles.
Source: IANS