Toyota Kirloskar Auto Parts commences construction of its engine plant and expansion of its transmission plant at Bidadi

Bangalore, Karnataka -- (SBWIRE) -- 03/06/2011 -- Toyota Kirloskar Motor (TKM) announced today that Toyota Kirloskar Auto Parts PVT. LTD. (TKAP) – a joint venture between Toyota Motor Corporation, Japan (TMC), Toyota Industries Corporation, Japan (TICO) and Kirloskar Systems Limited, Bangalore, held a ceremony to mark the commencement of construction of its new engine plant and the expansion of its existing transmission plant at Bidadi. This development is a part of the unit localization project. The ceremony was held at its current plant at Bidadi, on the outskirts of Bangalore.

Mr. Hisashi Suzuki, Managing Director,TKAP unveiled the foundation stone under the august presence of Mr. V P Baligar, Principal Secretary, Department of Commerce and Industry and Mr. Takahiro Iwase, Senior Managing Director, TMC and Mr. Hiroshi Nakagawa, MD, TKM.

The unit localization project for Etios involves setting up a new engine plant and expanding the existing transmission plant, also an EOU. The new production at the plant, representing an investment of approximately Rs. 5 billion, was one of the projects cleared by the State High Level Clearance Committee, Government of Karnataka, at its meeting held on the 24-Jan-2011. Approximately 100,000 engines will be produced per year starting in the third quarter of 2012 and approximately 240,000 transmissions per year starting in early 2013.

TKAP currently produces manual transmissions for the "Fortuner" manufactured in India, Thailand and Argentina. It also produces axles and propeller shafts for the "Innova", manufactured in India.

Mr. Vikram Kirloskar conveyed the key role played by TKAP in the Unit Localization Project for ETIOS car and stated that "Indian operations play a very important role in Toyota's global strategy. Making of Etios exclusively for the Indian market and the localization of engine and transmission marks an important milestone in the growth of Toyota in India. Production of engines and transmissions for the Etios will further localize parts production.With the production of these critical parts, the localization ratio for Etios,currently around 70%, is expected to cross 90%."

Mr.Hisashi Suzuki in his address "This project will help generate additional employment for more than 500 members at TKAP. It will also additionally, create opportunities for indirect employment in our supplier fraternity. TKAP, an EOU will now contribute towards localization and will get an opportunity to serve customers in India."
Overview of TKAP

Company name Toyota Kirloskar Auto Parts Private Limited (TKAP)
Location Bidadi,Karnataka, India
President Hisashi Suzuki
Establishment April 2002
Products (Production capacity) Front and rear axles (52,000 units/year); propeller shafts (52,000 units/year); R type manual transmissions (170,000 units/year)
Site area 202,000 m2
Start of production July 2002
Number of employees Approx. 800 (as of April 2010)
Equity Participation TMC -64%, Toyota Industries 26% and Kirloskar Group -10%

Overview of TKAP New plant
New Gasoline Engine plant (for Etios) New Transmission plant (for Etios)
Location Bidadi (32 km southwest of Bangalore), Karnataka, India
Investment Approx. Rs 5 billion
Start of production Third quarter 2012 Early 2013
Production capacity 100,000 engines per year 240,000 transmissions per year
New jobs Around 500

Overview of TKM

Company name Toyota Kirloskar Motor Private Limited
Managing Director President: Hiroshi Nakagawa (TMC)
Established October 1997 (start of production: December 1999)
Location Suburb of Bangalore, Karnataka State
Products Corolla Altis, Innova and Fortuner manufactured in India.
Camry, Prado, Land Cruiser and Prius imported as CBUs.
Annual production capacity Approx. 80,000 units
Equity participation TMC: 89%, Kirloskar group: 11%
Number of employees Approx. 4,650 (as of end of 2010)
Land area Aprox. 432 acres (approx.1,700,000 m2)
Overview of TKM 2nd Plant

Location On the site of Toyota Kirloskar Motor Private Limited (on the outskirts of Bangalore, Karnataka State)
Products Etios Sedan and Hatchback Liva (will go on sale in April 2011)
Start of production December 2010
Annual production capacity 70,000 units.

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