Compact car project on track

Pune: Toyota Motor Corporation has announced earlier globally more new car projects, but they are under reconsideration, and the India-specific compact car is the only confirmed project and is very much on track, Mr Hiroshi Nakagawa, Managing Director, Toyota Kirloskar Motor (TKM), has said.

“I visited Japan this week to confirm the progress of this strategic vehicle. The development is half way into completion and we will launch it in the Indian market in one year and ten months from now,” Mr Nakagawa said.

This will coincide with the commissioning of TKM’s new plant near Bangalore in December 2010, where both the hatchback and sedan versions will be made. The vehicle will have around 60 per cent local content, he said, adding that the number of Toyota dealerships, 82 to date, will double over the next two years to prepare for it.

Calling the current situation “tough”, he said that the company’s sales had fallen 50 per cent during the second half of 2008, and action such as block closures were needed to deal with inventory pile-up.

“Now, we have no such problem and production has increased this month,” he said, adding that the current production stood at 3,000 units a month and was expected to improve in March.

Measures planned to push up sales include inviting Toyota Financial Services to set up operations in India. Mr Nakagawa said that feasibility studies conducted last year had been positive.

TKM’s Bangalore plant has an annual installed capacity of 60,000 units.