Toyota Kirloskar Motors plans to invest about INR 275 crore for expanding production capacity at their second facility, located near Bangalore. This facility manufactures Toyota’s high selling Etios Liva hatchback and the Etios sedan.
According to the company’s VP for sales, Sailesh Shetty, they will expand production capacity of their second plant to 1,20,000 units from the current 70,000 units. For this, they have invested a total of INR 275 crores. This completion of this expansion project won’t take place till the Q2 of 2012.
The first facility of the company, also located near Bangalore, has 90,000 units per annum production capacity. Shetty also added that they expect the collective sales of the Liva and Etios to be about 60,000 units this year. So far, the company has managed to sell about 21,000 models of the Etios, launch in December, 2010.
With the rising preference for diesel powered models in wake of increasing petrol prices, Toyota also has plans of launching diesel powered variants in the future. He added that they have completed their diesel technology. They will be introducing diesel powered variants of the Liva and Etios at an appropriate time. They first want to set up their petrol powered variant.