Toyota plans to increase localisation

Automobile manufacturer Toyota is expecting products’ localization to go up to 80% from current 70% on an average. The sales of Innova have been affected by the ban on diesel engine cars with above 2,000 cc capacity in the National Capital Region, said senior company officials.

Speaking to reporters during the launch of the new Multi Purpose Vehicle (MPV) Toyota Innova Crysta in Chennai, Padmanabha B, vice-president, Customer Service Group of Toyota Kirloskar Motor said that localisation of the company's products is currently on an average around 70%, though the levels may vary according to products.

"We are looking to increase localisation. We expect it to go to around 80%," he told reporters. The company is expecting its diesel engine plant in Bengaluru to be operational in a few months, he added.

Around seven to eight percent of the Innova market was in the NCR region and the Supreme Court direction to stop diesel engine cars with over 2,000 cc capacity has impacted sales, said Padmanabha. The company sells around 60,000-70,000 units of Innova a year.

The company is expecting similar sales volume or more than that from its new MPV Innova Crysta. When asked about the pricing strategy of the new vehicle and whether the higher prices would impact sales, he said the company has been creating new market segments rather than following the existing segments and the new product would also create a new segment where it would be a leader. 

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