<Automobiles>Toyota-Kirloskar-"We are here to stay".New MPV due in 2000.
[Source:From The Hindu,BusinessLine]
Saturday, February 06, 1999
Toyota-Kirloskar project apace
Date: 06-02-1999 :: Pg: 01 :: Col: d
Janaki Murali
BANGALORE, Feb. 5
TOYOTA-KIRLOSKAR, which is setting up a $170-million project at Bidadi to manufacture a new multi-purpose vehicle for the Indian market, is all set to launch it in the new millennium.
Despite a recession in the industry and an uncertain future for the mid-car segment, the company is going ahead as per schedule and plans to inaugurate its factory and its new 'India- specific' vehicle in January 2000.
Mr. S. Yamazaki, Managing Director of the company, told Business Line, ''We are here for the future. We are not here for this year or the next year. The recession will plateau out by the year 2000.''
Mr. K.K. Swamy, Deputy Managing Director added: ''We are going ahead full blast according to our original plans. We are sure the economy will improve. We are here for the long term perspective. We are here for good. We should not worry about what is happening today or what is happening tomorrow.''
Nearly 87 per cent of the plant construction is complete; machinery erection in paint shop and press shop has started and the plant construction of Toyota Techno Park India has also started. The company has finalised vendors for components and has invited five component majors to set up shop in the State. While some of them are setting up their production plants at Bidadi, others are setting up their units at Tumkur road and Hosur road.
Densu, which will be manufacturing radiators and airconditioners, is setting up its plant on Tumkur road. The others who are coming in are Araco, which makes seats, Aishin Seiki (press parts); Toyota Gosei (plastic parts) and Toyoda Tekkoo (steel parts). These component manufacturers are, in turn, in touch with local manufacturers for supply of raw material. Toyota-Kirloskar has already appointed 23 dealers.
The MPV - or family type of vehicle - is being built to suit Indian climatic conditions and roads and ''will have the riding comfort and the ambience of a regular Toyota car. We have made a study of Indian conditions and this vehicle will be India- specific,'' Mr. Swamy said.
According to Mr. Yamazaki, ''The basic design of the MPV has already been decided; fine-tuning is being done. A clay model has already been made of the MPV.''
An interface between engineering and production is on now. The MPV is being tested, not only by the company, but by the vendors too, to ensure that it suits Indian conditions. ''We have to make the adjustments in our production facilities as well as in our vendors' capabilities,'' Mr. Yamazaki said.
The company has not yet decided on the pricing of the car. ''We cannot say our product is good, you should buy. We ask the customer who has to buy the car and so price depends on the customer,'' he said.
Mr. Swamy added that ''the price is set by the customer and we have no control over that. What we can control is our costs. Our emphasis is on lower costs and high quality.'' The company has not tied up financing with any car financing companies yet.
Toyota, which is reputed for following the management principles of Gemba Kaizen, or eliminating waste in the workplace, is incorporating the Kaizen principles in the Indian unit. Mr. Swamy said: ''What we are trying to do is built the Kaizen mind in our Indian employees. The Kaizen does not come top to bottom but has to come from bottom up, and the person who is actually operating should know how to do a particular operation at a much reduced cost and at a reduced time.
hindubusinessline.com
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