Since the rising price of fuel has stormed India, those who were stuck with the petrol were left behind, and very few of them could bounce back. Toyota played safely then, rolled out all its models in the diesel way back. Now, marching forward to take another giant step in this league, as reported, this carmaker is building a new factory in India, which will see the inauguration by next year.
This new setup of diesel plant is seemed as an outcome of the country’s new motto – Make In India. The localization ratio in engine will plunge to 80% for the sake of saving cost, as well as attaining a shining image in the business environment. The location is Jignai, nestled inside the premises of Kirloskar Toyoda Textile Machinery, on the outskirts of Bangalore, has urged an investment of Rs 800 crore for the production capacity of 100,000 units annually.
Hence, this isn’t the only manufacturing bay of Japanese carmaker in India. Its existing land of the facility in Bidadi, near Bangalore, is occupied up to the optimal value where it manufactures not only cars but also petrol engines. Thus, the new land acquisition and a fresh setup was the need of hour for this carmaker.
Last year, Toyota witnessed a decline across its sales in India by 8.5 percent, where it managed to sell the 5,000 units of Innova monthly. But the exciting part is, source confirmed, trial of diesel engine production will commence soon.