MUMBAI: The Indo-Japanese joint venture Toyota Kirloskar Motors (TKM) has pushed back the launch of the new Toyota to next year from end of 2015 as it is keen on increasing the localisation quotient of India’s top-selling premium sports utility vehicle (SUV).
“We want to launch the new Fortuner in India like Toyota launched it in Thailand but we will not bring it to India for at least a year,” Said N Raja, director and senior vice-president (sales and marketing) Toyota Kirloskar Motors.
The all-new Fortuner will have new styling while carrying forward the design DNA from the existing model, with large chrome grills, LED headlamps, and daytime LEDs, among other features. The new model, though, gets a host of creature comforts like push button start, Bluetooth connectivity, power seats and large display screen.
The company is keen to increase local manufacturing content in the Fortuner, which remains the top selling SUV in its segment, with an eye on improving profitability. The Bengaluru-based company is also facing challenges with regards to capacity.
The Fortuner and the Innova, which is India’s largest-selling premium multi-utility vehicle (MUV), are produced at the same plant. Their high price notwithstanding, both the models are facing high demand with the company struggling to keep pace with supplies.
“The Innova and Fortuner are utilising 95 per cent of the capacity of Plant 1 whose capacity is 100,000 units per year,” Raja said. “We cannot increase the plant capacity and we also cannot shift production of the Fortuner or the Innova to Plant 2.”
TKM’s Plant 2, which has a annual capacity of 255,000 units, makes its sedan, hatchback and compact SUV models, such as the Etios, Etios Liva, Etios Cross, Corolla, Camry and Camry Hybrid. According to Raja, about 55% of Plant 2 is presently being utilised.
The company is discussing ways to increase production of the Fortuner without increasing the overall capacity of Plant 1. While Fortuner takes up 1,300 units every month of manufacturing space the balance of 6,000-7,000 units is taken up by Innova.
“We will take a decision on how to free up capacity at Plant 1 and discussions are on currently for just that”, added Raja.
Further, the new Rs 800 crore diesel engine plant, making engines for the Innova and the Fortuner, will come on stream by early next year. Once operational it will push up localisaiton content of both the models to 80%, which will help cut the import bill. The company currently imports the engines for the two models. Currently Toyota has a petrol engine manufacturing unit in India, set up in 2011 with an investment of Rs 500 crore through another subsidiary in India, Toyota Kirloskar Auto Parts.
