Tag Archives: Innova

Toyota planning Rs 780-cr investment in Bidadi plant

Toyota logo
Toyota Kirloskar Motor Private Limited (TKML), a subsidiary of Japan’s Toyota Motor Corp (TMC), plans to invest another Rs 780 crore at its Bidadi plant near Bangalore.

The company, which has invested around Rs 5,000 crore in India, has approached the Karnataka government for the necessary clearances, said a senior minister in the state cabinet. The company has set up two car manufacturing plants, and is setting up an engine plant at Bidadi. Currently, TKML employs around 5,000 people.

“Toyota has approached the state government with the proposal to invest an additional Rs 780 crore at its Bidadi plant. It also wants additional 16 acres of land for expansion in engine manufacturing and components for its small cars in India,” Murugesh R Nirani, minister for large and medium industries, government of Karnataka, told Business Standard. Nirani said the company’s proposal would be discussed by the state high level clearance committee , headed by the chief minister, which clears mega industrial investment projects.

In July, TKML had announced it would increase its production capacity to 310,000 units by 2013, with an investment of Rs 898 crore.

It is in the process of enhancing production at its first plant from 90,000 units to 100,000 units, while production at its second plant is being increased from 120,000 units to 210,000 units. The first plant would manufacture Innova and Fortuner units, while the second plant would manufacture Etios, Etios Liva and Corolla Altis.

posted by carazooblog @ Wednesday, November 23rd, 2011 Comments Off links to this post
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Toyota to invest Rs. 500 crore for engines and transmissions unit

Toyota Engine & RnD
Toyota after launching its much-awaited Etios sedan in India is already on cloud Nine. The big honchos at Toyota have already charted out plans for India that also includes investing an additional Rs 500 crore to set up engines and transmissions plant for its Etios sedan and Etios Liva hatchback.

Toyota has already invested Rs 3,200 crore to develop the Etios car project and now with an additional Rs 500 crore pumped into the project, it reflects how seriously the Japs want to get a hold of the Indian mass market. This investment also means that localisation of the Etios is being concentrated upon. The scheduled production of engines and transmissions at the Toyota Kirloskar Auto Parts will begin in the third quarter of 2012.

As of now, 70 per cent of the components of Etios are locally sourced. However, with this newly planned investment; localisation might go up to 90 per cent by end of 2012. Critical components such as engines and transmissions are being imported from Japan now but with this planned investment; transmission production will begin by 2012 followed by the engine in 2013.

Now adding to the plans are the very positive response the newly launched Etios has gathered. For the sedan with a starting price tag of Rs 4,96,330 (Ex-showroom Delhi), it has already garnered 7,086 bookings since December 1. The majority of bookings (1,200) came from Mumbai.

As per the stats, nearly 40 per cent bookings for the Etios sedan comes from North India while 32 per cent came from South India. Well, yes, the customers of Etios would have to wait for at least four months to take home their cars. Now with Toyota’s new marketing strategy to concentrate on Tier II and Tier III cities to sell Etios and Etios Liva hatchback that will be launched later in April 2011, the strategy will certainly pay huge dividends in the longer run.

Toyota-Etios

Mr. Sandeep Singh, Deputy Managing Director of Marketing for Toyota Kirloskar Motors says, “The ratio of sedan sales in cities will come down to 40 per cent from 70 per cent at present and it will increase in semi—urban and rural areas to 60 per cent from the present 30 per cent.”

Meanwhile, the company has announced the Etios sedan’s four variants, J, G, V and VX, which are priced between Rs 4,96,330 and Rs 6,82,519 ex—showroom in Mumbai.

TKM intends to double sales in India next year to 1,40,000—1,50,000 units, on the back of Etios and Liva. The company currently sells the sedans, Toyota Corolla Altis and Camry, along with the multi—utility vehicle Innova and SUVs such as Fortuner, Land Cruiser Prado, Land Cruiser and Prius.

posted by carazooblog @ Wednesday, December 8th, 2010 Comments Off links to this post
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Toyota all set to launch Etios sedan on December 1

Toyota-Etios-sedan-Concept
Toyota Motor Corporation, the World’s biggest automobile company is all set to launch its mass market offering in India, the Etios.

Yes, The Toyota Etios will be launched on Wednesday, December 1st. The Auto major, though a late bloomer in the Indian auto Industry, has finally realized the importance of the growing Indian automobile market.

The Japanese giant which is present in the country through a partnership with Kirloskar group had been successful with its few products like sedans Corrola and Camry and the famous utility vehicle Innova and Fortuner. However, the carmaker will launch the sedan version for the car to begin with followed by the hatchback version of the car probably in the first quarter of 2011.

Toyota Corp President Akio Toyoda is exclusively flying down for the event on Wednesday, which is seen as a very important event for Toyota in India. Toyota Kirloskar Motors wants to ensure that this car will change the road map of the company in India with its mass appeal.

While the bookings for sedan start from December 1, the bookings for hatchback will begin from March.

According to agency reports, TKM’s Deputy Managing Director (Marketing) Sandeep Singh has stated that bookings for Etios sedan would begin on first of December with delivery to start from January 1st. Nevertheless, it also reported that Singh declined to talk about the price of Etios before the launch but said the sedan would compete with the likes of Swift Dzire and Tata Manza and the hatchback with Hyundai i20, Maruti Swift, Ford Figo and Polo of Volkswagen.

The reports stated that TKM targets to sell 70,000 units of Etios in the first year. “We are very excited about the launch. We are sure the customers will be very happy. Reviews of auto journalists are very, very good,” Singh added, according to the report.

posted by carazooblog @ Monday, November 29th, 2010 Comments Off links to this post
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Car Prices Shoot up for the Fourth Time This Year

price-rise
Fuel prices increased the other day and now we have automobiles themselves costing more. We hear that Toyota, GM and Ford are on the brink of raising car prices for the fourth time this year. What excuse are they offering this time? Let’s find out. Well, they say as they capitalise on cheap funding-fuelled demand and improve profitability that has been under pressure due to rising commodity prices.

Cars from these makers are believed to see surges ranging between 0.5 and 3 percent. That would mean, in Delhi, these cars are going to cost Rs 1,500 to Rs 20,000 more than the current prices. “There are cost pressures from various commodities as well as the currency fluctuations with a stronger Yen and Dollar that makes component sourced from abroad as well as imported cars costlier, forcing us to charge more,” said Sandeep Singh, deputy managing director, marketing, at Toyota Kirloskar Motor.

While we are all eagerly waiting for the Corolla Altis Diesel to make an entry, we hear that the current variant of the Altis sedan is going to see a 1.5 per cent price increase. It would thus cost Rs 15,000 more. Effective next week, the Toyota Innova too will see a Rs 10,000 hike. In spite of the financial downturn, auto makers witnessed strong growth in the past year that has given them confidence that any increase will not deter demand. They are now trying to pass on the rising costs to customers.

Banks seem to be lending a helpful hand. There is abundant bank funding at affordable rates and this has further catalyzed car sales in the country. Cars like the popular Maruti Suzuki Swift demand long waiting periods for delivery. Car prices had increased in January and again in February after a 2 per cent increase in excise duty. There was another one in April due to new fuel emission norms. But, demand for cars remained stable. Customers still queue up before dealerships.

Car sales grew 33 per cent during the June quarter and during the first half of 2010, sales rose 25 per cent to 19.5 Lakh units, the fastest in six years. The growth rate has been so tremendous that car makers like Volkswagen and Renault are planning new launches. Even France’s PSA Peugeot Citroen that left the nation a decade ago plans to return.

“The huge demand and surging sales has helped Indian auto industry to absorb high commodities burden till now but now we will have to pass on some burden to the customers in a short span of time.” said Pawan Goenka, president at SIAM and head of M&M’s automotive sector. However, he did not disclose the exact price hike that the company’s vehicles like the Scorpio are going to bear.

Meanwhile, GM has raised prices this week by up to 3 percent. The Cruze price has gone up by Rs 14,500. Tata Motors and Ashok Leyland increased prices as much as 2 per cent. Maruti Suzuki and Hyundai, India’s largest car makers are yet to decide about the price hike.

Natural rubber nearly doubled to Rs 180 a kilogram in the last 12 months. So, parts suppliers too are waiting to get their share of the amount from car manufacturers. For some, rubber costs have become as much as 40 per cent of the total cost of production. With global demand picking up and iron ore prices increasing, steel prices too have increased by 15 per cent to around Rs 38,000 a tonne since January.

posted by carazooblog @ Friday, July 9th, 2010 Comments Off links to this post
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Will Wuling Hong Guang Come to India?

Wuling-Tavera
It’s not long since the Beijing Auto Show ended with great pomp and show. Do you remember that new Wuling Hong Guang compact business vehicle presented by SAIC-GM-Wuling at the show? Whoa! What an automobile that was. Now, good news follows.

The same model is going to be launched in the Indian market. China’s Shanghai Automotive Industry Corporation Group (SAIC) and General Motors Company recently set up a US$100 million joint venture in Hong Kong to focus on the Asian markets and that included India. It certainly looks like the joint venture plans to explore and launch an entry-level low-cost car for the Indian market.

The Hong Guang flaunts a well-designed exterior that’s truly compact. The relatively small engine changes traditional perceptions of compact business vehicles. It has been aimed at luring those looking for a business vehicle with exceptional fuel economy, terrific functionality and at an affordable price. If launched in India, we believe the new car may fetch around Rs. 7-9 Lakh and will be pitted against the likes of Mahindra Xylo and Toyota Innova.

The company, however, has remained tight-lipped about the matter. No news yet. But speculation also says that the Hong Guang will come with P-TEC 1.2-litre and 1.4-litre engine options. If speculation transforms into reality, the Hong Guang will be the first business vehicle with an engine displacement under 1.6 litres. The 1.2-liter engine was one of the 10 best engines of China in 2009. Both these eco-friendly engines are more fuel efficient than other engines with the same displacements.

The new car was chiefly created to meet the demands of small and intermediate ventures as well as private entrepreneurs. The Hong Guang’s Eastern aesthetics give it an eminent image that reflects Chinese personality and sensibilities. The rounded and streamlined exteriors and the U-shaped front face add to the vehicle’s solid personality. The arc-like grille connects with the same type of eagle-eye headlights found in international business vehicles. The shield-shaped taillights accentuate the Hong Guang’s destructive attitude.

Yet, the car puts on show a lot of grace with its side body lines flowing smoothly in a simple and acute manner. The dazzling six-inch aluminum alloy wheels add the missing streak of luxury while the carrier on the rear-sloping roof adds to the vehicle’s functionality.

Just like the exteriors, the Hong Guang’s interior has round interfaces and arcing lines; proof of Chinese design that also gives a spacious feeling. The handy and attractive central console is dual-toned with sedan-like instruments. Like other members of the Wuling family, the Hong Guang has a T-shaped interior layout.

Like any other business vehicle, the Hong Guang’s interiors with the 2+2+3 seating arrangement boast ample space. The wheelbase is longer than like-sized sedans. Flexibility personified; luggage and seating capacity can be increased or decreased based on need. The second and third rows of seats can fold flat or be removed entirely. Digital technology takes driving, comfort, power, fuel economy, safety and durability to a whole new level.

The chassis of the Hong Guang was adjusted and optimized by Lotus in the UK, which focused on comfort and safety. The suspension has a quake-absorbing function, making it quite comfortable even when driving on rough roads or under stormy weather conditions.

posted by carazooblog @ Tuesday, June 8th, 2010 Comments Off links to this post
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Toyota Launches ‘Special Edition’ of Innova

Toyota Innova SE front
The Innova just stepped on to another milestone. The model has successfully completed five years in India and its creator, Toyota Kirloskar Motor Pvt. Ltd. has decided to celebrate the model’s birthday in style.

Toyota has just announced the introduction of the ‘Innova Special Edition’ to commemorate the five successful years of the Innova in India. In addition to the existing Innova line-up, the Special Edition has been designed to give the vehicle an enhanced sophisticated look, and swanks affordable opulence.

Whoever thought only Maruti Suzuki cars come with the value-for-money tag, think again! The new Innova variant has a host of features like power windows, power door lock and air-conditioning; and all this comes at a very competitive price of Rs. 8,86,960 (ex-showroom Delhi). Contributing to the new looks are the bumpers, the athletic front grill, hood mould and rear door garnish; all in body colour, and body stripes with the special edition insignia.

The special Innova variant will be offered in one colour − Premium Super White. Interested in the new car? Then hurry up please for time doesn’t wait. The Innova Special Edition will be on sale for a limited period only, from June to September 2010. Also to be noted, only 700 lucky chaps will have the privilege of taking home the muscular model.

Commenting on the launch of the ‘Special Edition’, Mr. Sandeep Singh, Deputy Managing Director, Toyota Kirloskar Motor said, “The Innova has been highly appreciated by our customers, and has been the market leader in the MPV segment ever since its launch in 2005. We are focused on constantly upgrading our products based on customer feedback, and are now delighted to introduce the all new edition of the Innova which offers unique styling in combination with affordable features. Only 700 units of the Innova Special Edition will be available for sale, for a limited period.”

The Innova is a result of the unique IMV (Innovative International Multi Purpose Vehicle) project from Toyota that was launched in India in 2005, creating a different experience for customers. Since then, the vehicle has carved a niche for itself by offering the luxury of a sedan with the performance of an MPV.

The Innova has been dominating the Indian car market with a 31 per cent market share in the MPV segment in 2009. The car has also maintained the #1 status in the JD Power survey every year since its launch.

Toyota Innova SE side

TKM is a joint venture between Toyota Motor Corporation and the Kirloskar Group and hence, Toyota Kirloskar Motor. The car maker has invested nearly Rs. 1,500 Crore in its plant at Bidadi, employing around 3700 people.

The plant started production in December 1999 and has an annual capacity of 80,000 units. Now, as the Innova completes five years on the Indian roads, its nice to know that over 2,26,030 units of the model have been sold so far.

posted by carazooblog @ Thursday, June 3rd, 2010 Comments Off links to this post
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Will the CNG Price Hike Affect Car Sales?

CNG
We had the natural gas prices shooting up just the other day. If that was bad news, there’s something more. Compressed natural gas (CNG) prices too are expected to shoot up by around 20 per cent. This is going to affect everybody in a big way. The bus and auto-rickshaw fares are definitely going to rise. What’s more disheartening is that the demand for CNG cars may drastically reduce. However, in the long run, industry experts feel that the CNG cars would continue to sell.

“In the short term, higher CNG prices might cause a slump in demand as customers re-evaluate fitment costs and the cost of running CNG-fitted cars vis-à-vis a petrol or a diesel vehicle,” said Rakesh Batra, national head (automotive practice), Ernst & Young. While the sales of retrofitted CNG variants of Aveo, Logan, Accent, Santro, Corolla Altis and Innova are already diminutive, the increase in CNG prices is surely going to go as a slap on the face for those involved in the sale of these cars. The carmakers who were wearing the green car theme are going to get de-motivated.

The companies offer the variant as part of an expansion to their product portfolio of green vehicles in India. Currently, CNG variants contribute around five-seven per cent to the total sales of their respective models. This is mainly because of inadequate infrastructure in the country, so much so, that car makers like GM India have restricted sale of the CNG-fitted Chevrolet Aveoto only Ahmedabad, Delhi and Mumbai.

In Delhi, CNG is currently available for Rs 21.9 a kg. After the 20 per cent rise, it will cost Rs 26.28 a kg. Luckily, that would still be less expensive in comparison with petrol and diesel which are priced at Rs 47.93 and Rs 38.10 a litre, respectively. According to Vishnu Mathur, director general, Society of Indian Automobile Manufacturers, auto-rickshaw and bus fares are expected to go up immediately. “The impact on cars will depend on the change in overall operational cost of the vehicle,” he added. “However, since the gap between the cost of petrol and CNG per litre would narrow, the purchase decision would be more calculative,” he said.

About 680,000 Lakh CNG cars and autos, 12,000 buses and around 700 CNG trucks run on the Indian roads. “CNG would continue to be far cheaper than other fuel options. I don’t think CNG vehicles would be any less attractive in the future,” said R C Bhargava, chairman, Maruti Suzuki India. P Balendran, vice president, GM India, said: “Despite any quantum of hike, CNG will be a success. There will be no major impact on demand, as the overall operational cost of these vehicles will continue to be less that their petrol counterparts. We too hope that the prices do not affect the CNG sales in any way.

posted by carazooblog @ Friday, May 21st, 2010 Comments Off links to this post
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