Toyota begins export of transmission assemblies

Toyota Kirloskar Auto Parts (TKAP) has begun exports of manual transmission assemblies to Toyota's plants across seven locations in South East Asia, South America and South Africa.

The Rs 250 crore export oriented unit with a 1.6 lakh annual capacity, while turning TKAP into a tier-I supplier, also has the potential to hoist the company among the top three auto component exporters in India, according to Vikram Kirloskar, vice chairman.

This unit, a single supply source to several Toyota assembly units, is expected to meet the requirements of the IMV platform vehicles that are slated to roll out this year.

The IMV project is aimed at enhancing Toyota's competitiveness by optimising its worldwide development, procurement and production activities through orderly and efficient tie-ups among production bases outside Japan.

Akio Toyoda, senior managing director Toyota Motor Corporation said, at the opening of the company's fourth gearbox plant in India on Tuesday, that this signifies integration of Toyota's Indian arm into the company's global operations. Adding, "Today's event includes senior officials from Toyota's bases in ASEAN, which would be the main export destination for TKAP's transmissions."

Inaugurating the plant, Union finance minister, P Chidambaram said the country must forge such global partnerships to tap its inherent natural and human resources. "To sustain and attract such tie-ups, quality, labour and ethical issues should be addressed," he said.

" For instance any disruption in TKAP's working would affect the production schedule of Toyota's assemblies globally."

TKAP, a Toyota Motor Corp and Kirloskar Systems Rs 380 crore joint venture , also has a domestic arm, an axle and propeller shaft unit servicing the requirements of Toyota Kirloskar Motors Qualis model. While this unit has a 80 per cent localisation content, the just unveiled transmission plant boasts 60 per cent localisation.

TKAP, it is learnt, pipped other Toyota plants to the post by showcasing its competitive costs, and reliable alliances with tier-II and III suppliers. The company has developed 13 tier-II and 45 tier-III suppliers for the project.

Incidentally, the company set up EOU units of Kirloskar Toyoda Textile Machinery and Owari Precision Products to support the project.

Meanwhile, Toyota's top management refrained from commenting on future launches, proposed investment and the evinced stake pattern. Earlier speaking at the launch, Dharam Singh, chief minister Karnataka urged Toyota to look at destinations in North Karnataka for future investments.