 "Toyota Fortuner")
The Indo-Japanese joint venture of Toyota Kirloskar Motors (TKM) is keen on increasing the localisation content of India’s top-selling premium sports utility vehicle (SUV), the Fortuner, before launching a fully new version next year.
The new Toyota Fortuner, launched in Thailand this July, was to be brought to India by TKM before the end of this year, it was believed.
However, says N Raja, director and senior vice-president (sales and marketing) at TKM, “We want to launch the new Fortuner in India but will not bring it here for at least a year.”
The all-new Fortuner will sport a totally new styling while carrying forward the design DNA from the existing model, such as large chrome grills and LED headlamps. The new models is to get other features such as a push-button start, Bluetooth connectivity, power seats and a large display screen.
The company is keen to raise localisation content in the Fortuner, top selling SUV in its segment. The Bengaluru-based company also facing challenges on the vehicle’s capacity.
The Fortuner and Innova, also India's largest selling premium multi-utility vehicle, are produced at the same plant. Despite their high price, both face high demand, with the company struggling to keep pace.
“The Innova and Fortuner are utilising 95 per cent of the capacity of Plant-1, whose capacity is 100,000 units a year. We cannot increase the capacity and also cannot shift production of the Fortuner or Innova to Plant-2,” added Raja.
TKM’s Plant-2, with annual capacity of 255,000 units, makes the Etios, Etios Liva, Etios Cross, Corolla, Camry and Camry Hybrid. Raja says about 55 per cent of Plant-2 is under utilisation.
The company is discussing ways to increase production of the Fortuner without increasing the overall capacity of Plant-1. While Fortuner takes up 1,300 units every month of manufacturing space, the balance of 6,000-7,000 units is taken by the Innova.
“We will take a decision on how to free up capacity at Plant-1,” added Raja.
Further, the new Rs 800-crore diesel engine factory, making for both Innova and the Fortuner, will come on stream by early next year. Once operational, it will push up localisation content of both models to 80 per cent and cut the company’s import bill.
Toyota already has a petrol engine manufacturing unit, set up in 2011 at an investment of Rs 500 crore through another subsidiary in India, Toyota Kirloskar Auto Parts.
