Japanese car giant Toyota has said it will resume normal production in India from May 20 after being compelled to slash output by 70 per cent since April 25 due to component supply constraints following the devastating earthquake and tsunami that hit the island nation.
During the period of low operations, production was curtailed by about 10,000 units, translating into a revenue loss of about Rs 650 crore for its Indian entity, Toyota Kirloskar Motors (TKM).
“The parts that we were not getting will start arriving in coming days. That is why we are confident of resuming normal operations earlier than expected,” the TKM Deputy Managing Director (Commercial), Mr Shekar Viswanathan, told PTI.
In the wake of disruption in supplies, the company had earlier suspended production on Mondays and Fridays between April 25 and June 4.
“We lost about 10,000 units of production across all models… Because of the production drop, the revenue loss was on an average Rs 6,50,000 per vehicle,” Mr Viswanathan said.
On that basis, the overall production loss of 10,000 units translates to about Rs 650 crore.
TKM currently manufactures models like the Etios sedan, multi-utility vehicle Innova, premium sedan Corolla Altis and SUV Fortuner in India.
At present, the waiting period for Etios and Fortuner are about four months each, while that of Innova and Corolla Altis are three months and one month, respectively, he said.
“Plans are afoot to recover the loss of production and reduce the waiting period. The plant will function on all week-days and some of the non-working Saturdays,” the company said.
TKM primarily imports engine and transmissions from Japan and other regions.
The company also said the upcoming launch of its small car, Etios Liva, in India is on track.
“We are now all set to launch the Etios Liva. The launch will be as per schedule in the last week of June,” the TKM Deputy Managing Director (Marketing), Mr Sandeep Singh, said.
The company’s first facility, which produces the Innova, Corolla Altis and Fortuner, in Bangalore has a production capacity of about 80,000 units per annum.
The latest facility at the same location, set up at an investment of Rs 3,200 crore, has an installed capacity to roll out 70,000 units per annum. Currently, the Etios is being produced here.
TKM also sells sedan Camry, SUVs Prado and Land Cruiser and hybrid car Prius in the country as fully imported vehicles.
Also see – Japanese Tsunami’s effect on Indian Auto Market
Source – BusinessLine