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Toyota Motors is considering setting up an engine manufacturing plant in India to increase its localisation level, which varies for different models.
With a market share of about five per cent in the Indian market, Toyota expects to sustain the growth momentum as it plans to bring in more models above the ₹10-lakh category, a segment expected to witness steady growth.
Naomi Ishii, Managing Director, Toyota Kirloskar Motor, said: “The company currently offers Corolla, Innova Fortuner and Camry above ₹10 lakh and Etios below ₹10 lakh category. With the growing middle-class in India, we would add more models in the ₹10-lakh and above category. This would enable our loyal customers to remain in our fold.”
Without naming any specific models, he said the launch of the ₹10-lakh and above models could cover sedans and a compact sports utility vehicle. The new engine plant, location of which is yet to be decided, may entail an investment of ₹700-800 crore.
Some of the engines that the company packs in its cars are sourced from other manufacturing centres.
By setting up an engine plant, possibly by one of the Toyota group companies, it would be able to increase the level of localisation and keep costs under check.
Launching the third ‘Toyota Driving School’ in the country, in Hyderabad, Ishii said, “With the launch of the school we intend to make the journey towards safe India. The driving school will work towards inculcating safety habits among aspiring drivers.”
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