Toyota Recasts Vendor Base For Outsourcing

Japanese carmaker Toyota is consolidating its automobile parts and components manufacturing business in India with an eye on outsourcing for its global operations and cost rationalisation for its subsidiary, Toyota Kirloskar Motor Ltd.

For instance, Toyota is investing Rs 31 crore in Kirloskar Toyoda Textile Machinery, a subsidiary manufacturing textile machinery and spinning ring frames as well as transmission parts.

Toyota is also increasing its stake in the company to 95.1 per cent and a new transmission parts division is being set up.

Company sources said Kirloskar Toyoda would assist the new units set up by Toyota Motor and the Kirloskar group at Bidadi and Jigni for manufacturing transmission assemblies.

 

Similarly, Stanzen Toyotetsu India, in which Toyota Iron Works Company and Toyota Tsusho Corp together hold an 82.5 per cent stake, is also getting a leg-up.

The company has been asked to identify local vendors who can manufacture and supply pressed and welded automobile parts and components, dies, jigs, moulds and fixtures required by Toyota Kirloskar Motor and its suppliers.

The subsidiary will also extend technical and other support to upgrade their manufacturing and quality capabilities.

Steel and Logistics Centre Pvt Ltd, a 94.5 per cent subsidiary of Toyota Tsusho Corporation providing integrated logistics management services-- import and sales of industrial inputs, parts and components--has been permitted to import from overseas companies that are not related to the Toyota Tsusho Corporation group.

The sources said this would help the carmaker to access cheaper manufacturing bases and enable it to bring down manufacturing costs in the long run.

Steel and Logistics Centre is engaged in manufacturing, fabricating and processing of steel products and components for automobiles in the country. The company