Toyota Kirloskar may set up engine plant in Bangalore

Toyota Kirloskar Motors Ltd (TKML), the Indian arm of Japan’s Toyota Motor Corp, today said it was mulling the possibility of setting up an engine plant in Bangalore.

The company had not taken a decision in this regard, but the powertrain plant would depend on the volume growth in the near future, said Hiroshi Nakagawa, managing director, TKML.

Talking to reporters on the sidelines of the Global Investors Meet here today, he said, “Toyota is discussing with the company’s global headquarters at Japan over the possibility of setting up the powertrain and R&D facility at Bangalore.”

“We are regularly sending our engineers and technicians to our R&D centre in Japan and Taiwan. In this way, we are involving our Indian employees in the R&D set up.”

The company plans to sell 70,000 Etios, a small car, in the first year of launch and ramp up production depending on the market response.

The company is building its second plant at Bidadi near Bangalore at an investment of Rs 3,200 crore. The engine for this small car would be imported from Japan and once the new engine plant came up, it would be produced locally, he said.

TKML does not export from India. However, it might do so in the future, he said adding that it had held talks with Ennore Port authorities near Chennai for this.

General Motors has its R&D centre in Bangalore. Earlier this morning, Karl Slym, president and managing director of General Motors India, said its R&D centre would add 500 more professionals by 2010-end.

“In our bid to increase the localisation of our models, we have given orders to the tune of $500 million to Indian contractors,” he said.