On the back of strong demand for the newly-launched Etios sedan in the domestic market, Toyota Kirloskar Motor on Wednesday said it would invest Rs 300 crore to ramp up production capacity by 40 per cent to 210,000 vehicles a year.
TKM Managing Director Hiroshi Nakagawa said, “The demand for Innova and Fortuner has persistently grown in recent months and, consequently the waiting period. The huge demand for the Etios has further provided momentum to expand our production capacity. We will enhance our production capacity to cater to our customers’ growing demand.”
The company has two plants with a combined capacity of 150,000 units per year. It will raise its first plant’s capacity to 90,000 vehicles a year from 80,000 now and the second plant’s capacity to 120,000 units a year from 70,000 at present. The second plant, which commenced operations last December, was set up to manufacture the made-for India sedan Etios and yet-to-be launched hatchback, Liva. The expansion will be carried out in a phased manner starting July 2011, extending into the second quarter of 2012.
TKM Deputy Managing Director Sandeep Singh said, “We have over 20,000 bookings for the Etios. The waiting period at present is between four-six months. With the capacity expansion measures in place, this should come to six-eight weeks by the end of June this year.”
The company recently announced plans for the introduction of a second shift production in April, reduction in production time per vehicle, production enhancement and postponement of the launch of hatchback Etios Liva from April to June to reduce the waiting period for the Etios sedan.