Toyota Kirloskar Auto Parts (TKAP), a joint venture of Toyota Motor, Toyota Industries Corp and Kirloskar Systems, today commenced the construction of its engine plant and the expansion of its existing transmission plant at Bidadi.

Toyota Etios Liva

This is part of the unit localisation project for Toyota’s Etios which involves setting up a new engine plant and expanding the existing transmission plant, the company said. 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 in January 24.

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.

Outlining the key role played by TKAP in the unit localisation for the ETIO car project, Vikram Kirloskar, Chairman and Managing Director, Kirloskar Systems, said “Indian operations play a very important role in Toyota’s lobal strategy. Making of Etios exclusively for the Indian market and the localisation 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 localisation ratio for Etios, currently around 70 per cent, is expected to cross 90 per cent.”