28 may 2011
Indian parts to power Toyota, Honda and JLR cars
Toyota Motor Corporation and Honda Motor Corporation plan to make India a hub for sourcing components of small cars; JLR also to source more parts from India, mulls using India assembly plants for manufacturing cars for exports
New Delhi/Pune: Toyota’s Etios, the entry-level sedan, made its global debut in India, while Honda will sell its small car, Brio, from October, making India the model’s second market after Thailand.
Both want to make these models in other developing countries, too, with key components coming from India. Toyota plans to make Etios in Brazil from next year. It has also started studies for launching the model in Russia and China.
Sandeep Singh, deputy managing director, Toyota Kirloskar Motor (TKM), said: “Etios has opened opportunities for vendors in India. When it is introduced in other countries, key components will be sourced from India.”
TKM, which has a large vendor base, exports transmissions for its multi-utility vehicle, Innova, and its sports utility vehicle, Fortuner, to plants in southeast Asia. It has 107 suppliers in India.
Sources in the company said it was setting up an engine plant with a capacity of 100,000 per annum by 2012 for Etios and a transmission plant (capacity of 240,000 per annum) by 2013. A part of production from these plants could be exported to other countries where Etios would be made.