[Alfresco]

A situation most manufacturers would die for!

http://www.financialexpress.com/indu...r-help/903876/

“Toyota Kirloskar Motor has said it is difficult to cut down the waiting period for the Innova Crysta and Fortuner, its utility vehicles, at least for a few more months as its plant has reached its maximum capacity utilisation of 95%. The UVs continue to have a waiting period in the range between six and 10 weeks, with the company increasing the price of the Innova Crysta by Rs 78,000 and the Fortuner by Rs 1.6 lakh post-GST. “We are facing production constraints as we have touched peak capacity utilisation in our first plant in Bengaluru where the UVs are manufactured. The first plant has the maximum production capacity of 100,000 units,” said N Raja, director and senior V-P (marketing & sales), TKM.
Though it has another plant in Bengaluru where other products like the Liva, Etios, Corolla, etc, are being produced with an installed capacity of 2,10,000 units per annum, it will be difficult for it to make these two UVs there as it is not equipped. “We have increased the Fortuner production to 2,000 units a month from 1,000 units. But still we have not been able to bring down the waiting period which now stands at 6-10 weeks,” Raja said. Similarly, the Innova Crysta has a waiting period of 4 to 6 weeks.”

The bright side for us enthusiasts is a small statement:
“TKM has moved its parent in Japan to not only help in arresting production constraints at its first plant but also to bring in new UVs to capitalise on the increasing demand, It has also sought the parent’s help to see how best the production capacity of its second plant can be utilised.”

[srishiva]

I know manufacturing lines can even build vehicles of different wheelbase changing the carry points flexibly. So, Toyota has not innovated its manufacturing line to suit a mix of UV and passenger cars ?

With its cars not really flying off in the market, they need to make use of their idle production capacity better.

[abhishek46]

Originally Posted by Alfresco

The bright side for us enthusiasts is a small statement:
“TKM has moved its parent in Japan to not only help in arresting production constraints at its first plant but also to bring in new UVs to capitalise on the increasing demand, It has also sought the parent’s help to see how best the production capacity of its second plant can be utilised.”

I am sure it's parent in Japan will help, in the best possible way.

By shipping a container full of Stickers and Body kits for a years supply of RS/Anniversary editions of the crysta & Fortuner!

[Yeldo]

Originally Posted by Alfresco

The first plant has the maximum production capacity of 100,000 units,”

Though it has another plant in Bengaluru where other products like the Liva, Etios, Corolla, etc, are being produced with an installed capacity of 2,10,000 units per annum, it will be difficult for it to make these two UVs there as it is not equipped.

I wonder whatever happened to the fabled Toyota production planning strategy.

They build a plant with 200.000 capacity for models that do not sell even a fourth of that while constraining the Innova and Fortuner to a plant with half of that capacity? Especially with those obscenely F-A-T profits that the Innova and Fortuner generate?

I feel that they could sell double the current number of Innovas and Fortuners if they could build them.

They will also have to increase service facilities to match the numbers. Toyota dealers occasionally are known to unofficially limit deliveries as they cannot cope with after sales service requirements.

[DicKy]

Originally Posted by srishiva

I know manufacturing lines can even build vehicles of different wheelbase changing the carry points flexibly. So, Toyota has not innovated its manufacturing line to suit a mix of UV and passenger cars ?

With its cars not really flying off in the market, they need to make use of their idle production capacity better.

I could be wrong but my guess is that the Innova and Fortuner are body on frame models, while the Etios twins and Corolla are monocoque models. Not only that, the engines shared between them are also different in nature.

Originally Posted by Yeldo

I wonder whatever happened to the fabled Toyota production planning strategy.

Maximum utilisation of capacity is more important to overall profits I guess.

Originally Posted by Yeldo

They will also have to increase service facilities to match the numbers. Toyota dealers occasionally are known to unofficially limit deliveries as they cannot cope with after sales service requirements.

Had heard of a rumour like this, but it was in the Qualis/Corolla/Camry days. Dunno for sure if it applies now also.

On the other hand, there is already a thread here where it is shown that Maruti and Hyundai too have 95% utilization.

http://www.team-bhp.com/forum/indian...facturers.html

Correct me if am missing something here.

[deetjohn]

LOL

A strategic leak to cover Toyota' stubbornness and leisurely ways?

Why can't Toyota make their very profitable UVs at their second plant which is mostly idle? Sure, it will need some work. But it's not like Toyota doesn't have the money, competence or demand to do this. And the market is not going to miss the cars made at the second plant. They are just lacking the will to change.

Toyota should do only UVs.

1) The market is willing to pay a premium for them.
2) The vehicles need not be packed with features. Heck even some essentials can be removed and nobody will bat an eyelid.
3) They have a long shelf life.

It fits well with the ethos of Toyota Kirloskar.

[ajmat]

The Japanese are very long term planners. Although India ia a big market, they are getting pretty confused with the policies which change constantly. Hybrid or not? Diesel being discouraged but no clear policy etc.