The office premises of Toyota Kirloskar in Bangalore is gallantly geared up for the formal launch of Etios [image]. There has been a hectic series of activity in the Bidadi plant located adjacent to the first factory of Toyota which is created at an investment of Rs3200 crore. The beeline workers engaged in various activities indicate that the company is all set to clear the December deadline. Already 70 technicians from the company’s apex in Japan have flown in Bangalore to train the floor employees in the production sector. Training for employing the equipments too is undergoing from these engineers.
Toyota has hired 350 employees to take up the job in the new plant and once the plant gets its final shape additional 1650 employees would be absorbed. If it happens, then it would be the largest manpower plant for Toyota in India. The current manpower strength of Toyota is 3700 with an annual addition of 200-250. According to the Deputy MD of the company, there will be 75% of domestic sourcing for Etios and the net output of 70000 units in 2011 is marked for the domestic market alone. Only in 2012, the product will be exported to markets like Nepal, Bangladesh and Sri Lanka, and other right-hand drive markets. When the volume reaches 200000 there will be localization of engine and transmission.
The company is keen on providing high quality and resale value as vital features for Etios, he added.
To reach the mass quickly, the company is giving a strong base for its dealer network by increasing the number (from 99 to 150) and linking them direct to the company headquarters. There will be a pool of information about the customer registration and the feedback.
In the meantime there is an allocation of Rs500 crore as the buyer’s credit for supplies regarding the expansion. This factory is an exclusive unit for manufacturing the sensational product Etios as the first factory is looking after making Innova [images] (MUV) and Corolla Altis [images] (sedan). These two, along with Qualis, are the hallmarks of Toyota in India and the company is shrewd enough to be devoid of any chances going against it.
It is quite apparent that the domestic market has unleashed a red carpet to the small cars that almost all domestic as well as global companies have staked their claims. VW(Polo [images]), Chevrolet(Beat [images]) and Ford (Figo [images]) are a few to quote. Additions may come from Nissan (Micra [images]) and the proposed small car from Honda. However, the industry analysts like the Vice-President of IDFC-SSKI Securities ( a brokerage firm) feel that the success of Toyota lies heavily on the pricing. This, he said, despite the recall made by Toyota for its 8.4million cars in Europe. He quoted the imminent success of Figo, which carried the competitive price tag- the lowest range is Rs3.5 lakhs.