Toyota Kirloskar Motors, on seeing the unprecedented demand for its Toyota Etios sedan, has stepped on the gas and are constructing a new engine plant at its existing Bidadi plant. The Etios sedan currently has long waiting periods of 5-6 months and this is causing the customer interest to wane away. Moreover, the Toyota Etios hatchback, named as Toyota Liva would be launched in April 2011 and if orders for the sedan can be taken into account, the hatchback would be a much more desirable thing.
Currently the 1.5 liter engine for the Toyota Etios sedan comes directly from Tokyo. Once the new engine plant comes up in Bidadi, localization for the Etios twins would be up to 90%. The company may translate its savings to the consumer, thus bringing down the prices of the cars even more than what they already are priced at. Also Toyota are looking to employ atleast 500 more workers for the new engine unit. Also some of the transmission components would be manufactured here. This new plant would only be ready by the year 2012 and from thereon, every year, there would be around 1 lakh engines made from the plant. The production of transmissions would take a bit longer and only by 2013 would the target of 2.4 lakh transmissions would be achieved. As of now the transmission for the Fortuner as well as the propeller shafts for the Innova are been manufactured in this plant. These parts are also exported to other countries hosting these vehicles.