Toyota to build diesel engines in India from 2016

Toyota Kirloskar Motor, the Indian subsidiary of Japanese carmaker Toyota, will start building diesel engines in India from next year. The step is expected to help the company increase localisation in its products to 80%.

In 2012-13, TKM had proposed to Toyota setting up of a plant for manufacturing diesel engines in India as demand for diesel cars was rising. Now, the company is building a new facility at Jigani, located on the outskirts of Bangalore. While trial production at this plant is expected to begin soon, commercial production is slated to begin in early 2016.

The new facility is being set up with an investment of Rs 800 crore at the premises of Kirloskar Toyoda Textile Machinery. It will have an initial annual capacity of 100,000 units and will build engines for the Innova and Fortuner.

Toyota has two car manufacturing facilities in Bidadi, near Bangalore. It also manufactures petrol engines there. The entire land allotted to the company has been used up.

Source: Business Standard