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Reacting to reports in a section of the media in Japan, the officials of Toyota Kirloskar Motor Private Limited (TKML), a subsidiary of TMC in India, said “There is no decision yet on setting up a diesel engine plant in India.”
Shekar Viswanathan, vice chairman, confirmed that the company’s parent in Japan is yet to give its stamp of approval on the proposal mooted by TKML regarding setting up of the diesel engine plant.
Two years ago, Toyota had set up a gasoline engine plant near Bangalore at an investment of Rs 500 crore through its another subsidiary in India, Toyota Kirloskar Auto Parts (TKAP). “There are many new plans in the pipeline for India. But, the parent’s approval has not yet come for them, including setting up of a diesel engine plant. As the demand for diesel cars slow down once again, it is very difficult to take a decision at this stage,” he said. Sandeep Singh, deputy managing director and COO, TKML, said the company had commissioned a feasibility study on the possibility of diesel engine plant. “It is essential for us to increase the localisation in our Indian operations. We have diesel engine plants at various locations in the world. As regards setting up one such plant in India, there is no decision as of now,” he said.
A section of the media in Japan had reported on Monday that Toyota Motor Corp is considering a diesel engine plant for India with an annual capacity of 50,000 units by 2015.
“By 2020, the Indian passenger car market is set to grow to 5 million vehicles and Toyota plans to cater to that market in a significant way. As part of this journey, we intend to set up a diesel engine plant as well. However, it has not yet decided on when it will be set up,” Viswanathan added.
Recently, TKML increased its installed capacity in India to 310,000 units per annum at its two plants at Bidadi near Bangalore. It presently produces the Innova and Fortuner at the first plant. Etios and Etios Liva, Corolla Altis and new Camry are produced at the second plant. Prado, Land Cruiser and Prius are imported as completely built units and sold in India.
“We still have scope for increasing the capacity further by another 40,000 units at Bidadi if the market improves this year,” Viswanathan said.
