Saturday, January 07, 2012
By Manoj Kumawat
Toyota to increase localization, to invest Rs 1650 crore
Showing immense concern for its car customers in India, Toyota Motors has decided to be more in tune with its component suppliers so that there are fewer chances of a vehicle recall for replacement of a component. Toyota personnel showed this concern at the Auto Expo in New Delhi that has witnessed some of the most stunning launches ever and there are some still to come. The sensitivity shown by Toyota is also in line with the growing trust for Toyota cars in India as shown by the 2011 sales results in which the Japanese carmaker has registered 82 percent growth. Toyota Etios Liva and Toyota Etios sedan were the sure winners in 2011.
See More Auto Expo Photos
As per reports, the decision to have a more stringent quality assurance system in place and to take the competent suppliers in confidence has been taken in response to the recent recall of over 41,000 Toyota Etios sedan and Toyota Etios Liva hatch for the replacement of a hoe pipe. Last month Toyota recalled the particular lot of cars and had replaced the inlet hose pipe that supplies fuel from the tank. The lot of cars that needs the replacement include all Toyota Etios sedan and Toyota Etios Liva hatchback sold since their launch till October 8, 2011.
See More Auto Expo Photos
Toyota Motor Asia-Pacific President Hiroji Onishi has reportedly told media that the issue of replacement will be resolved soon and the process of the replacement is on. The story of Toyota or any company struggling with suppliers and faulty components is not new and Toyota Motors itself had to recall 20,000 units of Toyota Innova in 2008 to replace a faulty part.
Meanwhile, the company has reportedly invested Rs 3200 core and will soon come up with a new manufacturing plant at Bengaluru. Apart from this the company also plans to invest around Rs 1,650 crore to further the production capacity and produce cars locally by 2014.
