About the Report
This report details Toyota Kirloskar Motor [TKM] Pvt. Ltd. India's, sustainability performance from April 1 2009 to March 31 2010.
Toyota Kirloskar Motor (TKM) policies, strategies and the field and the results that follow. published its first annual performances affecting its Environment Report in 2003 as a business and stakeholders during Our key target audience is our disclosure of information on the the financial year April 2009 to internal and external stakeholders. company's environmental March 2010. They include employees, dealers, activities. In 2007, the report customers, suppliers, widened its scope to include the The material included in this government, educational company's activities in corporate report is based on stakeholder institutions, the media, Toyota social responsibilities. feedback and extensive internal Motor Corporation and other dialogue conducted through companies that have an interest in Through this first Sustainability processes that form an integral sustainability and reporting. Report and the sixth annual part of the company's daily report, TKM intends to provide operations. TKM believes that this We welcome your feedback on transparency of its economic, report covers a balanced and this report. Please send us an environmental and social complete set of topics that email to: [email protected] commitments as well as the illustrates our committed efforts in
We welcome your feedback on this report. Please send us an email to: [email protected]
An online copy is available at: http://toyotabharat.com/inen/environment/index.asp SUSTAINABILITY REPORT 2010
Contents
About the report 02
Message from MD 06
Corporate Philosophy 08
Stakeholder Engagement 22
TKM and Sustainability 23
Environment Performance 24
Social Performance 34
Customer 35
Employees 40
Society 45
Business Partners 49
Economic Performance 58
Special Stories 60
Auto Expo 2010 (New Delhi) 60
Prius Launch in India 61
Greenathon II 61
TOYOTA KIRLOSKAR MOTOR 05 SUSTAINABILITY REPORT 2010
Message from MD
I take this opportunity to express my hearty thanks to all our stakeholders for your continuous support to Toyota Kirloskar Motors. At TKM, we strive to be the most loved and admired automobile company in India by following the Toyota-way philosophy. Team Toyota India is committed to contributing to economic and social development for a sustainable future. We strive to contribute to the Indian economy by: • Manufacturing value added products, with global standards of safety and quality • Bringing innovative technology to the Indian market • Generating employment • Raising the skill levels by imparting training through initiatives like Toyota Technical Education Programme (TTEP) and Toyota Technical Training Institute (TTTI) . • Creating road safety awareness through the Toyota Safety Education Programme (TSEP) In line with Toyota's global vision towards sustainability, our aim is to make the process and products eco- friendly. The Etios plant is an eco-plant in harmony with nature where we have incorporated environment friendly technologies like water-borne paint, energy efficient equipment and water recycling. The Delhi Auto Expo 2010 marked an important milestone in TKM's history through the launch of our Etios Concept and launch of hybrid car Prius in India which is the world's best selling hybrid car. Towards our journey in achieving sustainability, we have planted 64,000 saplings. We will continue this journey towards creating a potential natural forest. I thank my colleagues, the suppliers, dealers and all stakeholders for their continuous wisdom in meeting every challenge with speed, flexibility and cooperation towards sustainability. I am delighted to present TKM's 2010 Sustainability Report to you and welcome your feedback.
Let's Grow Together,
Hiroshi Nakagawa, Managing Director Toyota Kirloskar Motor
04
06 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Key Figures
Environmental Performance
23 % Reduction in power usage
20 % Reduction in Water Consumption
85 % Coverage of Dealerships Compliant with ISO 14001
98 % Coverage of Suppliers (core) Compliant with ISO 14001
Social performance 2008 2009 2010 Number of Employees 3762 3511 5637 Turnover rate for employees 6.3% 3.7% 2.8% Community Investments (through Community Spirit and Community Sponsorships) in Mil. Rs. 85.5 106.5 108
Economic performance 2008 2009 2010
Units Manufactured 53,774 46,251 63,269 Units Imported as CBU 1,295 492 504 (Completely Built Unit)
Net Profit after Tax [Rs. in Mil] (08/09 and 09/10 fiscal years) 2,073 1,226 3,093
TOYOTA KIRLOSKAR MOTOR 07 Corporate Philosophy
Seeking Harmony between People, Society and the Global Environment, and Sustainable Development of Society through Manufacturing… SUSTAINABILITY REPORT 2010
Corporate Philosophy
Since its inception, Toyota has by applying its guiding worked continuously towards principles of conducting open contributing to the sustainable and fair corporate activities development of society and also contributes to through the manufacturing economic and social and provision of innovative development through its local and quality products and business activities. services that lead the times. Through its overseas Toyota Kirloskar Motor's subsidiaries, Toyota is performance in India and our dedicated to social corporate culture are driven contribution by addressing a by Toyota's guiding principles variety of cultural and social and the Toyota way. In India, issues and engaging in we reflect these global values proactive local through our sustainable plant communication. Toyota will activities and our customer remain a locally based first approach. corporation and will continue to play its part in promoting In every nation and region, the growth of each nation and Toyota aspires to be a good region with its automobile corporate citizen of the world production.
The Guiding Principles
Guiding Principles and 2020 Vision A framework for settling long-term business goals and policies
Toyota Earth Charter applies principles and vision to environmental aspects of business
Environmental Environmental Action Plan Management Systems translates long-term vision for monitoring performance, and policy into medium to implementing action plans long-term objectives and ensuring targets are met
The guiding principles at methods that it has embraced Toyota (adopted in 1992 and since its foundation. The revised in 1997) reflect the guiding principles (detailed in kind of company that Toyota the section on 'Stakeholders') seeks to be in light of the define the values the unique management company delivers to its philosophy, values, and stakeholders.
TOYOTA KIRLOSKAR MOTOR 09 SUSTAINABILITY REPORT 2010
Toyota Global Vision 2020
As we look ahead to 2020, society and nature is Toyota believes that re- extremely important. Toyota examining the relationship is helping promote efforts between nature and the toward finding a balance industry and pursuing between the cycles of synergy between nature and the cycles of manufacturing, people, industry.
Toyota Global Vision
Economic development is global scale, the environment useful member of both the global accelerating in a number of surrounding the automotive and local community and has regions throughout the world. With industry is undergoing drastic formulated its Global Vision 2020, environmental and energy related changes. Amid these changes which provides a future vision for issues having an impact on a Toyota endeavors to remain a Toyota's place in the world.
Where Toyota would like to be in 2020 TOYOTA GLOBAL VISION 2020
"Cycles of Nature" "Cycles of Industry" An industry All people and creates new communities are subject to value, while the natural cycles of the spawning the birth earth. Toyota is committed to of a new industry - undertaking monozukuri such is the way of the Open the frontiers of tomorrow (manufacturing) that strikes a cycles of industry. harmonious balance with Toyota endeavours to be through the energy of people nature in order to carefully a driving force behind sustain the global the development of and technology environment. sustainable industries. Currently, Toyota is employing "Open the Frontiers of Tomorrow' as the slogan for Global Vision 2020. This slogan expresses the As it looks ahead to 2020, important. Also, by seeking commitment of Toyota and each Toyota believes in re- harmony between and every employee to never be examining the relationship monozukuri and the cycles satisfied with the status quo. To between nature and of nature, Toyota is helping create a path to a new world and industry and pursuing promote efforts toward to work steadily towards the harmony between finding a harmonious realization of society's dreams. monozukuri, people, balance between This progress is to be achieved society in general, and challenges in new fields in through the energy of people and nature is extremely order to achieve this. technology.
10 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
The Toyota Earth Charter (formulated in 1992, revised in 2000) is based on the Guiding Principles at Toyota formulated in 1992 (revised in 1997), and embodies Global Toyota's comprehensive approach to environmental issues. The Toyota Earth Charter has been adopted by about 530 affiliates worldwide to date. Toyota Earth Charter
Basic Policy
1. Contributing towards a possible environmental global, national and regional prosperous 21st century technologies developing and scales and promotes society: Contributing to a establishing new technologies continuous implementation. prosperous 21st century to enable the environment and 4.Working in cooperation with society. Aim for growth that is economy to economy to society: Build close and in harmony with the coexist harmoniously. cooperative relationships with environment and set as a 3. Voluntary actions:Develop a a wide spectrum of individuals challenge the achievement of voluntary improvement plan and organizations involved in zero emissions throughout all based on thorough preventive environmental preservation areas of business activities. measures and compliance including governments, local 2. Pursuit of environmental with laws that address municipalities, related technologies: Pursue all environmental issues on the companies and industries
II. Action Guidelines
Always be concerned about the contribute towards • Contribute also to non-profit environment. Take on the environmental improvement activities challenge of achieving zero Business partners are partners Toward better understanding emissions at all stages, i.e., in creating a better Actively disclose information production utilization and environment Cooperate with and promote environmental disposal. associated companies awareness • Develop and provide As a member of society products with top-level Actively participate in social environmental performance. actions • Pursue production activities: • Participate in the creation of that do not generate waste a recycling-based society • Implement thorough • Support government preventive measures environmental policies • Promote businesses that
Toyota Environmental Action Plan
Toyota Environmental Action Plan System In accordance with the Toyota Earth Charter, Toyota Guiding Principles at Toyota Universal Motor Corporation (TMC) guiding Formulated in 1992, revised in 1997 has formulated the Fourth principles and policies Toyota Environmental Formulated in 1992, revised in 2000 Action Plan, a five-year plan
with medium-term goals Mid/long- Various environmental measures Toyota Global Vision 2020 term and guidelines covering the period from movement and direction 2006 to 2010 to facilitate Toyota Environmental Action Plan (Five-year plan) the promotion of Environment committees environmental initiatives by 2006-2010 Fourth Plan Daily operation 2011-2015 Fifth Plan (products, production, resource each company. Annual policies, plans
TOYOTA KIRLOSKAR MOTOR 11 Company Overview: TKM at a glance
As a joint venture between the Kirloskar Group and Toyota Motor Corporation, Toyota Kirloskar Motor Private Limited (TKM) aims to play a major role in the development of the automotive industry and the creation of employment opportunities through its dealer network and ancillary industries. SUSTAINABILITY REPORT 2010
Company Overview: TKM at a glance
Who We Are What We Do Toyota Kirloskar Motor [TKM] is a partly owned subsidiary TKM is an emerging of Toyota Motor Corporation, passenger car manufacturer Japan (TMC). TMC is in India. We manufacture and Japan's largest vehicle sell new vehicles, parts and manufacturer and is now the deliver customer service all largest automotive company over India through our in the world. independently owned dealer network. TKM employs about 4109 people and around 1528 Toyota Kirloskar Motor more are indirectly employed Where We Are manufactures the Innova, at our manufacturing facility. Our corporate headquarters Corolla Altis and Fortuner is based at our model vehicles. The Fortuner manufacturing plant in has been the best selling Bidadi, 25 km south of model in the SUV segment in Bangalore which is popularly India in 2009-2010. Also the known as the Silicon Valley Innova has been the best of India. We have a selling model in the MPV marketing office in segment for the past five Bangalore city and our years in succession. We also regional offices and training import and sell the Camry, centers are in Gurgaon, near Land Cruiser, Prado and Prius New Delhi. models as CBUs [Completely Built Units] throughout our dealer network in India. TKM also markets used vehicles under the 'Toyota U Trust' outlets. This is a dedicated used vehicle outlets refurbished by Toyota and backed by a comprehensive warranty that provides customers with a similar level of manufacturer's commitment as new car buyers.
TOYOTA KIRLOSKAR MOTOR 13 SUSTAINABILITY REPORT 2010
Product Line-up
Innova
Corolla Altis
Fortuner
Corolla Altis ,Innova & Fortuner model automobiles (manufactured in India)
Key Milestones of Toyota in India Initiated as a successful joint venture between the Japanese Toyota Motor Corporation and the Indian Kirloskar Group, TKM has emerged as a key player in the automobile industry over the past decade.
1997 1999 December 2003 January Construction of TKM Qualis Production Started Corolla Production Started
1997 1999 2001 2003
1997 August 2001 April 1997 Establishment of TKM IS0 14001 Certification
14 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Prado
Camry
Prius Land Cruiser
The Camry, Prado, Land Cruiser 200 and Prius (imported into India as Completely Built Units) Manufacturing /trading of service parts for the above models.
Toyota Kirloskar Motor took off in India with a beginning in the MPV segment and within a decade has diversified into the mid-range luxury and SUV segment. As a first of its kind venture by Toyota, TKM will be staging the manufacture of Toyota's small car in India for the first time.
2003 September 2007 August 2009 July Reached 1 Lakh Product. Units TTTI Inauguration Plant 2 foundation laying
2003 2005 2007 2009 2009 2009
2005 February 2009 June 2009 August Innova Production Started Afforestation Day – 21st June Fortuner Launch
TOYOTA KIRLOSKAR MOTOR 15 SUSTAINABILITY REPORT 2010
A bird's eye view of the Toyota Kirloskar Motor, Bidadi manufacturing facility TKM is situated in the Bidadi Industrial Area, which has been earmarked by the Government as an industrial area development project. No natural biodiversity habitats are affected by the location of the manufacturing facility.
1
2
4 3
16 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Legend: 4, Afforestation Zone 1, Toyota Technical Training Institute [TTTI] 5, Plant 1
2, National Parts Centre [NPC] 6, Plant 2
3, Test Track 7, On-Site Supplier's Park [OSS]
7
6
5
TOYOTA KIRLOSKAR MOTOR 17 SUSTAINABILITY REPORT 2010
Award & Accolades
CII-ITC SUSTAINABILITY AWARD 2009 among large business organizations in the category 'Commendation for Significant Achievement'. This award is to recognize and appreciate commendable achievement in the Environment, Social and Economic dimensions towards achieving sustainability.
Mr. Mahesh Salkar, GM, TKM receiving the award from Mr. Jairam Ramesh, Hon. Minister of State (Independent Charge) of the Ministry of Environment and Forests, Govt. of India
"BEST EMPLOYER BRAND AWARD - AUTOMOBILE" AWARD FOR MOST INNOVATIVE ENERGY for the year 2009-10 EFFICIENCY & CONSERVATION ACTIVITY" by Bangalore Chamber of Industry & Commerce (BCIC).
TKM received the Best Employer Brand Award The Hon. Chief Minister of Karnataka presenting the instituted by the Employer Branding Institute, Mumbai. BCIC award
TOP MERCHANT EXPORTER -Export Excellence J D POWER AWARDS FOR PRODUCT PERFORMANCE Award For FY 2009-10 [FKCCI]
TKM awarded with the TOP MERCHANT EXPORTER - Award by JD Power for best car in the MUV/MPV segment GOLD for Export Excellence Award to the Innova for the FIFTH CONSECUTIVE YEAR
18 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Corporate Governance Philosophy: Governance Structure TKM recognizes that good Board of Directors governance is a sine qua non for At the core of corporate professionals in their functional sustainability. The mission and governance practice is our Board areas and provide directions to the vision statements, code of ethics of Directors, which is the highest management on operational and internal control mechanisms governing body. The Board issues, adoption of systems and built in under Sarbanes Oxley Act provides strategic guidance and best practices in management. compliance defines our value reviews the corporate policies, They also oversee the compliance system and reflects our culture regulatory compliance, significant of various legal and other and commitment to the values of management areas and overall requirements. corporate governance. performance of the organization. TKM has taken adequate steps to Toyota Kirloskar Motor promotes The TKM Board comprises of form various committees at the a culture of high ethical seven fulltime Executive Directors Board level to focus attention on standards, integrity, transparency and five Non-Executive Directors. crucial issues before placing the and accountability in our all Our company's Executive Directors same before the Board for business transactions and in are highly experienced consideration. compliance with all laws and regulations. The company has established internal control 7 Executive Directors 5 Non-executive Directors mechanisms to ensure the observance of the norms of BOARD OF DIRECTORS corporate governance and believes in a system driven performance with the highest Board Level Committees priority given to these systems. Audit Remuneration Share transfer Committee Committee Committee
TKM's Hierarchy:
Toyota Kirloskar Motor has a strong organization Corporate Affairs, Marketing and Manufacturing. that takes up environmental initiatives and The details have been mentioned in the chart promotes them effectively. The organization is below. mainly divided under three heads, namely
Indian Managing Project Office Director
Deputy Managing Deputy Managing Deputy Managing Director Director Director Corporate Affairs Marketing Manufacturing
Business Planning and Customer Relations Quality Assurance Legal Marketing Product Design and External Affairs and CSR Development Sales Administration Plant Administration and IMPEX Information System Dealer Development Production Engineering and Services Human Resource Mgmt Customer Service
Conversion and Production Finance and Accounting Accessories Quality Control Purchase
TOYOTA KIRLOSKAR MOTOR 19 SUSTAINABILITY REPORT 2010
TKM Vision and Mission
To enhance the quality of nurtures a commitment to the citizen, TKM faithfully abides daily operations, inculcate a environment and to also build by the following vision and unique corporate culture that long standing relationships mission statements: values innovative ideas, with the stakeholders to continuous improvements and remain a trusted corporate
Vision • Touch the hearts of our customers by providing products and services of superior quality at a • Delight our customers through innovative competitive price products, by utilizing advanced technologies and services • Cultivate a lean and flexible business model throughout the value chain by continuous • Ensure growth to become a major player in the improvement Indian auto industry and contribute to the Indian economy by involving all stakeholders • Lead Toyota's global operations in the emerging mass market • Become the most admired and respected company in India by following the Toyota way • Create a challenging workplace which promotes a sense of pride, ownership, mutual trust and • Be a core company in global Toyota operations teamwork Mission • Create an eco-friendly company in harmony with nature and society • Practice ethics and transparency in all our business operations Through these activities establish a superior brand image in India.
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Code of Ethics the whistle blower will be kept a emphasizes that all team secret and protected. The members should ensure that a TKM has developed a code of Whistle Blower Policy Committee conflict of interest, if any, arising ethics based on the guiding is headed by members of the out of factors like having a principles of Toyota. These top management and a business interest in another business ethics and values are comprehensive system is put in organization, hiring the services aimed at building a good place to investigate the of friends and relatives, doing organization and work culture complaints. business with friends and while also being a good relatives, insider training, etc., corporate citizen while achieving SOX Compliance will not affect the interests of the the company's vision and company in anyway. An mission. The code of ethics is TKM, which is a subsidiary of employee should inform the applicable to all team members Toyota Motor Corporation (TMC), Management and provide full and employees of TKM. is listed in the stock exchanges disclosure if he is involved in of USA, and complies with the any such activity. Whistle Blower Policy requirements of the Sarbanes Oxley Act (SOX) of USA. TKM Ensuring Legal TKM has formulated the Whistle has rigid control systems and Blower Policy which provides a processes in place to ensure Compliance framework for all employees to accuracy and reliability of its TKM has established a come forward with their corporate financial statements. comprehensive legal complaints regarding fraud, The company is focusing on compliance system, where each bribery, unfair business continuous improvements in the division head is responsible for practices and a breach of law or compliance and reporting the compliance of all laws and local customs, social rules and structures. regulations for the functions traditions. The Whistle Blower under them. The reports of the Policy has been circulated to our Managing Conflict of Occupier and the Company dealers and suppliers and is Secretary are reviewed by the applicable to all team members Interest Board. of the company. The identity of TKM's code of ethics
Mr. H Nakagawa Mr. Vikram Kirloskar Managing Director, TKM Vice-Chairman, TKM
Mr. DK Jain Mr. Ashok Sachdev President, Toyota Kirloskar Supplier's President, Toyota Dealer Council Association
TOYOTA KIRLOSKAR MOTOR 21 SUSTAINABILITY REPORT 2010
Toyota Guiding Principles Toyota's guiding principles, which were adopted in 1992, define the mission of Toyota and the value the company delivers to stakeholders. How the guiding principles relate to each stakeholder group is listed in the diagram at the bottom of the page.
1. Honor the language and providing clean and safe while honoring mutual trust spirit of the law of every products and to enhancing and respect between labor nation and undertake open the quality of life everywhere and management. and fair corporate activities through all our activities. 6. Pursue growth in harmony to be a good citizen of the 4. Create and develop with the global community world. advanced technologies and through innovative 2. Respect the culture and provide outstanding management. customs of every nation and products and services that 7. Work with business partners contribute to economic and fulfill the needs of in research and creation to social development through customers worldwide. achieve stable, long-term corporate activities in the 5. Foster a corporate culture growth and mutual benefits community. that enhances individual while keeping ourselves 3. Dedicate ourselves to creativity and teamwork, open to new partnerships.
Stakeholder Engagement TKM's stakeholders are all those groups which are perceived to be affected by, or who are capable of affecting the company's operations. The table below lists engagement activities undertaken in 2009-10.
CUSTOMERS Guiding Principles 1,3,4 Minimising environmental impact through eco -friendly engines and vehicles (see page 37) Introduction of eco-friendly Prius in India (see page 61)
EHOLD Business Partners TAK ER [Suppliers and Dealers] S Guiding Principles 1&7 Customer satisfaction EMPLOYEES enhancement activities (see page Guiding Principles 1&5 51) Team member family involvement activities (see Supplier development programs page 63) and TPS promotion (see page 55) Joint declaration between Management and Union (see page 42)
E N T GOVERNMENT GA EN GEM Guiding Principles 1,2,4 Regular liaison on compliance issues including environment, safety and society.
COMMUNITY TOYOTA MOTOR CORPORATION Guiding Principles 1 to 4 Guiding Principles 1&6 Community awareness and Regular liaison on operating issues Philanthropic Activities (see page 45) including product, quality, sales and marketing Traffic Safety Education Programme (see page 47)
22 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Toyota Kirloskar Motor and Sustainability At TKM, we strive to be the most loved & admired automobile company and have always endeavored to achieve this by doing business in a sustainable manner which is in harmony with nature. Sustainability is inherent in Toyota culture and our vision, philosophy and guidelines are true reflections of our commitment for a sustainable future. This is evident in one of the core principles of Toyota- 'repay the earth and society through technological innovation (and contribute to enhancing the quality of life everywhere.)'
Throughout its journey, Toyota has believed in the guiding principle of 'contributing to the development of a prosperous society through the manufacture of automobiles.' It provides Toyota with a clear path towards achieving sustainable development and has enabled Toyota to harmonize between two areas of sustainability - nature and manufacturing.
Community Afforestation Green Purchasing Afforestation At TKM Guidelines Program
Elimination of Community Substances of Development Concern Activities
Cycles of Cycles of Energy Nature Industry Conservation Clean & Green Activity in Community Eco mind Promotion
DERAP Environment. Awareness Greenathon II TSEP Training to
Activities at TKM in alignment with Global Vision 2020
TOYOTA KIRLOSKAR MOTOR 23 Environment Performance
Toyota Kirloskar Motors has focused on achieving harmony between its manufacturing activities and the natural world based on the concept of 'a plant that optimally utilizes natural resources, while operating in harmony with the natural environment.' SUSTAINABILITY REPORT 2010
Environment Performance
Toyota Kirloskar Motors Toyota EMS Concept: has focused on achieving harmony between its # 1 in the Asia Pacific Region manufacturing activities and the natural world,
Improve based on the concept of Environmental Performance Toyota Way and 'a plant that optimally ISO 14001 utilizes natural resources, Toyota Law EMS Prior while operating in Adherence Prevention harmony with the natural Compliance and Minimization of No complaints Environment Risk environment.'
In concurrence with The Toyota EMS (Environmental forms the backbone of our Toyota's Environment Management System) holds the commitment towards reducing key to environment our ecological footprint and we Action guidelines, TKM management efforts across have been re-certified for ISO Toyota affiliates and at TKM 14001:2004. has come up with its own alike. Globally, Toyota has encouraged all affiliate plants to In a pioneering effort, TKM has been strongly promoting ISO set of initiatives towards be ISO 14001 certified and TKM obtained the ISO 14001 certification among its suppliers and dealers. The core promoting sustainability 14001:1996 certification within a year of commencing idea is to promote environment operations in India. Toyota EMS friendly operations among all at the manufacturing site is applied to drive a continuous our stakeholders. In a performance improvement significant achievement, TKM in India. This section cycle in line with site specific has been successful in objectives and corporate promoting ISO 14001 to 98 elucidates the activities policies and strategies. The key percent of its suppliers and elements of the EMS system more than 85 percent of its taken up at the are 'compliance/no complaints' dealers. and 'environment risk manufacturing site at The highest degree of mitigation'. abidance to EMS (ISO Bidadi, Bangalore in In order to achieve the 14001:2004) by TKM has been objectives of environment recognized by the External Auditing Agency, which has detail. policy, the Environmental Management System (EMS) awarded TKM with Zero NC for has been used effectively. EMS four successive years.
TOYOTA KIRLOSKAR MOTOR 25 SUSTAINABILITY REPORT 2010 ENVIRONMENT PERFORMANCE TKM Environment Committee
The Toyota Motor Corporation work towards energy conservation year of production in 2001, to take (TMC) has established a regional and environmental risk care of environmental and CSR headquarters TMAP (Toyota minimization. Toyota Kirloskar activities as a specialized Motors Asia-Pacific) at Thailand. Motor also established an organization. This organization is intended to Environment Committee in its first
Companywide Leader Managing Director
Companywide Promoters Top Management Deputy Managing Director Organizational Structure:
Sub- Manufacturing Purchase Logistics Customer Communication Committee Sub-committee Sub-committee Sub-committee Service Sub-committee
Ensuring Zero Supplier ISO14001 CO Emission Scope 2 DERAP Promotion Promote TKM Non- Certification. Reduction ISO 14001 Envt. and CSR of Work Conformance Green Purchasing Packing Material Certification Commitment Guidelines Efficiency
Co-Ordination By the Safety and Environment Department
26 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Performance Data objective to minimize the impact formulated based on the TKM of its activities on the Five Year action plan which in Environmental Action Plan environment, thus contributing to turn is derived from Toyota's maintaining a balance of the Global Environment action plan. Toyota has been keen on economic, social and During the course of responding to the needs of the environment aspects of implementation of annual action environment as it does to its sustainability. The Five Year plans, there is nearly a 4 percent customer's requirements. It Environment action plan sets the reduction target so as to does so through its principles, guidelines for TKM's continuously improve the policies and the Toyota Environment Management and general performance of the Environmental Action Plan for for the promotion activities of its previous year. Environment Management. operations. The annual Environmental action plan is The following is a summarization It has been TKM's long term of TKM's performance this year.
TKM five year Environmental Action Plan (2009 - 2010)
Performance Data
Action Item Specific action items and goals Target Actual
Production: 4% Redn. 4% Redn.
Reduction in electricity consumption. (Purchased+generated)(kwh/veh) 20% based on Current 461 kwh/veh 416 kwh/veh year status
Reduce CO2 Reduction in LPG consumption. (kgs/veh) 20% based on 29.2 kgs/veh 28.97 kgs/veh emissions in Current year status production and logistics activities Reduction in energy.(Total of Electricity + LPG in GJ/veh) 3.12 GJ/veh 2.93 GJ/veh of each country 20% based on Current year status and region. Logistics :
Reduction in emission of CO2/unit 15% reduction based on 4% 4% 2006 values
Production :
Increase Yield ratio 68.5% 70%
Promote the Hazard Waste reduction : 4% 26% effective use of resources to Reduction in generation of Hazardous waste (kgs/veh). 20% 7.95 kgs/veh 5.87 kgs/veh further contribute based on Current year status (Chemical sludge+Phosphate to the realization of sludge+Paint sludge) a recycling based society Non-Hazardous Waste Reduction: 2% 2%
Reduction in generation of Non Hazardous waste 14.42 kg/veh 16.69 kg/veh (Miscellaneous solid waste) by 20% based on Current year
Logistics :
Reduction of packaging and wrapping materials 4% 4%
Reduction of water consumption by 10% based on current 2% 2% Reduce water year status (m3/veh) consumption 4.56 m3/veh 4.4 m3/veh
Initiative to reduce VOC reduction 48.8 gm/m2 43.92 gm/m2 VOC emissions
TOYOTA KIRLOSKAR MOTOR 27 SUSTAINABILITY REPORT 2010
Environmental policy commits us to control Note: The key performance Performance: KPI pollution and reduce energy at indicators are measured and every possible opportunity. We controlled by units which are Management strive continuously to minimize our usually based on the per car water consumption, the generation measurement over the entire year. Towards fulfilling our basic of hazardous waste and air obligation to the environment, pollution and we continue to The market conditions for Toyota TKM aims to use resources wisely reduce CO2 emissions and vehicles in the Indian automobile and reduce waste from its improve our energy efficiency. Our market were most unfavorable in business activities. For many periodic internal audits and 2008 and grew positively in 2009, years we have been reporting our external audits have strengthened consistent with the global market energy and water usage and our environmental management recovery. This has directly waste and recycling volumes from system. Our environmental impacted a few environmental our site in concurrence to the performance under various key parameters as they are related to saying 'what gets measured, gets indicators in the last three years is the fixed manufacturing demands. managed'. To guide our actions in summarized below. this direction, the environmental
Production Trend (Overall)
70000 63379
60000 46148 50000 53810
40000
30000 Production (veh/year) Production 20000
10000
0 FY07 FY08 FY09
Energy & Resource energy conservation activities in decreased by 23.25 percent and Conservation Activities the manufacturing plant by to 538 kWh per vehicle. This embracing the Five Year action decline in consumption may be towards maximizing the plan which sets the annual attributed to the increase in overall efficiency of processes reduction targets for all production volumes which led to environment parameters. the decrease in per vehicle Energy and resource conservation consumption due to fixed loads. In form the basic responsibility of a. Electricity 2009, TKM focused on ensuring any company aspiring to be the sustenance of energy saving sustainable. Grappling with the Consumption: activities and kaizens with the ever increasing consumption of following: fossil fuels for energy production TKM's electricity consumption in 1) High and low pressure air lines and the consequent CO2 the production area has emissions is a major hurdle decreased as compared to last 2) Energy training to TL's and towards achieving environmental year. By the end of 2009, the GL's sustainability. TKM is promoting average amount of energy 3) ESCO kaizen implementation. required to produce a vehicle
28 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Electricity Consumption Trend Electricity Consumption per vehicle Annual Electricity Consumption
800 34500 701 34117 700 33500
600 32350 593 538 32500 500 31931
400 31500 (Mil MWhr) [kWhr/veh] 300 30500
200 29500 100
0 28500 FY07 FY08 FY09 b. Water minimum of 4.4 m3 per vehicle. TKM continued to target the Water usage levels, like those for elimination of unnecessary water Consumption: energy, were affected by the usage through kaizen and by the increase in production volume. implementation of best process During the reporting period, the Considerable efforts were made technology such as Membrane amount of water required to towards monitoring and Bio-Reactor (MBR) and Reverse produce one vehicle decreased standardizing day-to-day Osmosis (RO) treatments that by 20.5 percent as compared to consumption. allow the recycling of wastewater. the previous year, to reach a
Water Consumption Trend Water Consumption per vehicle Annual Water Consumption
6.00 5.54 300
5.02 4.40 5.00 250
4.00 200
3.00 150 [m3/veh] (Mil m3/year)
2.00 100 270 256 279
1.00 50
0.00 0 FY07 FY08 FY09
TOYOTA KIRLOSKAR MOTOR 29 SUSTAINABILITY REPORT 2010 ENVIRONMENT PERFORMANCE c. LPG Consumption: energy source for heating trend as compared to the last purposes in ovens and boilers at financial year. Liquefied Petroleum Gas (LPG) TKM. The LPG usage was also serves as the prominent primary observed to be on a decreasing
LPG Consumption per vehicle LPG Consumption Trend Annual LPG Consumption
40 1800 1777 35 36.23 1750 30
29.65 28.03 1700 25 1672
20 1650 1595 (kg/veh) 15 (tons/year) 1600 10
1550 5
0 1500 FY07 FY08 FY09
This year, the LPG consumption concern related to the impacts of fell to an average of 28.03 the manufacturing facility on the kg/vehicle by 22.63 percent as environment include the emission compared to the previous year. of pollutant gases (CO2) and The main activity that was taken vapors (VOC). up at the paint shop to conserve LPG was the Oven and Booth a. VOC Management temperature control optimization and the management of the chiller Thinner based paint used on operation based on seasonal automobiles contains VOCs variation. However, owing to the (Volatile Organic Compounds), increase of demand in the market, which are known to cause odor the per vehicle consumption and health hazards. They have decreased due to the fixed also been attributed to the consumption of LPG in other formation of photochemical smog. processes, irrespective of the It is therefore necessary to reduce vehicles produced. their use. Towards Zeronizing Although, there is no requirement or any law on VOC emission Impacts on Environment by control in India, we at TKM have Reducing Emissions & proactively taken up activities Waste aimed at reducing VOCs. This aims at creating a better and safe Concurrent to the Toyota Earth environment for the future Charter which stresses on zero generations as the VOCs have the pollutant discharge, TKM has also potential of accelerating global adopted the same in its warming and producing Environmental Policy. The areas of photochemical smog.
30 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
VOC Emission Trend VOC Emission 55 50.3 50 48.3 45 45.1 43.2 2 40
35 VOC gm/m 30
25
20 FY06 FY07 FY08 FY09
There has also been a marginal wastes to landfill', TKM has been Karnataka. In 2009 a considerable decline in the VOC emission by 4 able to reduce its ecological reduction in hazardous waste percent with the implementation of footprint in terms of waste quantum has been achieved in various kaizen (improvement disposal. With the ideology of the light of activities promoted to activities). Transfer efficiency 'source reduction is to waste what reduce unnecessary moisture improvement in paint guns and preventive medicine is to health', content in the sludges. This led to robots through distance reduction, we have two main action an average reduction of 26 enhancing washing thinner usage guidelines towards our waste percent in hazardous waste as in bumper and resin shops, management activities: compared to the previous year. solvent consumption reduction in However there has been an manual cleaning during the i. Ensuring 100 percent increase of 15 percent in the non- painting process and in robot segregation and reuse/recycle hazardous waste quantity operation are a few practices that of non-hazardous process resulting from the introduction of a have been implemented. By waste new model. With the introduction following these practices, we have ii. To achieve zero hazardous of the Fortuner in the second half retained the global number one waste disposal at landfill of this year, the packing material position among all Toyota affiliates waste contributed greatly to the having thinner based painting TKM has entered its second year increase in non-hazardous waste. processes. in accomplishing the target of Though, we would like to draw the 'zero hazardous wastes to landfill'. reader's attention to the fact that b. Waste Hazardous waste disposal is the waste under this category is being carried out through co- subjected to complete material Management processing at the ACC Cement recovery and/or recycling. Plant at Wadi, Gulbarga in With the aim of achieving 'zero
Waste Generation Trend Hazardous Waste Non Hazardous Waste
25
20 8.5 8.0 5.9 15
10 14.9 14.5 16.7 Waste (kg/veh) Waste 5
0 FY07 FY08 FY09
TOYOTA KIRLOSKAR MOTOR 31 SUSTAINABILITY REPORT 2010 ENVIRONMENT PERFORMANCE Eco-initiatives : Towards an Eco-Friendly Plant
this regard, a methodological area. Eco-Kaizen includes all the approach of Eco-Mind, Eco-Kaizen improvement initiatives that are and Eco-Showcase have been taken towards creating a taken up to sensitize our sustainable plant and a low carbon ECO-Friendly Plant ECO MIND employees and the community at society. ECO KAIZEN large. We aim to promote sustainability in all our operations. Eco-Showcase: Eco- Showcase is an effort to promote Eco-Mind: Eco-Mind is a culture TKM's eco spirit to the community that we believe must get imbibed and the neighborhood. The ECO SHOWCASE into the minds of our team activities include social outreach members so that they start thinking activities involving our external TKM approach to a Sustainable about the environment in their lives stakeholders whether they are our Eco-Friendly Plant both inside and outside the suppliers, dealers or customers company. Eco-Mind activities and the surrounding eco-system include all initiatives aimed at too. Toyota Kirloskar Motor is creating an environmentally Several activities have been continuously moving towards conscious citizen. In other words, initiated at TKM to promote Eco- sustainability in all its operations to an employee with an Eco-Mind will Mind, Eco-Kaizen and Eco- reform itself into an eco factory in always think and act in the best Showcase among the team harmony with nature. TKM has interests of the environment. devised and implemented a members. Some of the key activities that have been comprehensive approach towards Eco-Kaizen: Eco-Kaizen is a implemented in the past year sustainability right from the grass- continuous improvement activity include: root level, i.e. the employees. In that can be executed at the work Logistics Kaizen
BEFORE AFTER
8 days Transit Lead 4 days Transit Lead time = 5 Days time = 2 Days
RPC, Gurgaon NPC RPC, Gurgaon NPC Dealer Dealer (Back Order) Bangalore (Back Order) Bangalore
Truck Train
Overall lead time reduction is 4 days Customer Customer
Kaizen Idea: Bangalore) and RPC (Regional customer service in town and Parts Center, Gurgaon) was achieve enhanced customer Train Logistics Introduction in through Transystem trucks which satisfaction. Since September Serviceparts Operation between had a high transit time. The 2009 all RPC back order NPC (National Parts Center, emergency/back order parts serviceparts are transported by Bangalore) and RPC (Regional reaching the customer on time was train six days a week. Parts Center, Gurgaon) for back not always guaranteed. order parts. Result: Action Taken: Trial Period: • Overall lead time reduction by A trial survey was conducted to four days. July 2009 to August 2009 check the feasibility of transport by • Improved customer service, train and this had the positive Background: customer satisfaction and result of saving lead time. By this The Serviceparts flow between quality of delivery. kaizen we aim to be the best NPC (National Parts Center,
32 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Voluntary Afforestation Activity
Continuing our efforts to in voluntary afforestation first work shift. This year, TKM create an environment programmes between August has planted about 64,200 friendly company, voluntary 29 and September 5. saplings over an area of afforestation activities were 21400 square metres within conducted within the Keeping up the good spirit the manufacturing facility. The company premises. About created on June 21, team average plant survival rate 600 team members members voluntarily was about 98.8 percent. enthusiastically participated participated to plant another 10,500 saplings after their
Glimpses of our Voluntary Afforestation Activity
TOYOTA KIRLOSKAR MOTOR 33 Social Performance
During the last decade, Toyota Kirloskar Motor has expanded its production and made advances in order to satisfy the needs of Indian customers buying Toyota vehicles. As the business grew, the company has contributed jobs and trade to the local economies in the country, enabling it to re-invest the profits earned from growth into green technologies and other community development initiatives for the future. SUSTAINABILITY REPORT 2010
Social Performance - Customer
Special Feature: actions are outlined in this section: to address a deterioration in information gathering and Quality Issues and inconsistencies that arose in Response in India: information sharing practices Action between the headquarters, the Toyota in India strives to deliver regional offices and dealerships. With the prime ideology of quality products to its customers 'Customer First', TKM has made but has also been concerned continued efforts to understand about the recall of Toyota vehicles safety and quality objectives from worldwide. This did not affect a technological and professional Toyota's operations in India as the Objective for Establishment standpoint and has been able to concerned models are not sold or of the Special Committee achieve them in material terms. manufactured in India. As a pro- for Global Quality. However, in recent months, there active measure, in-line with the have been several quality and establishment of the Global Review all the working safety concerns related to the use Quality Committee by TMC, the steps from the customer's of Toyota products in several India Quality Committee has been perspective, through the regions of the world. formed to enhance the quality and new interface, and to respond to customer reinforce the quality Toyota has looked at this issue as requirements dynamically. assurance system: an opportunity for renewal and improvement. We at TKM have India Quality Committee has been • Development also followed the same in India. launched at TKM in order to • Procurement (suppliers) We have taken this opportunity to achieve a customer interface that encourage every employee to is based on safety and • Production address the issues proactively by confidence. This is in concurrence • Engineering re-examining and recommitting to with the establishment of the principles such as customer first, Special Committee for Global • Sales and service the customer's perspective and Quality chaired by the TMC Genchi Genbutsu (on-site, hands- President, Akio Toyoda. A series on experience). The specific of approaches were implemented
TOYOTA KIRLOSKAR MOTOR 35 SUSTAINABILITY REPORT 2010
The purpose of the Committee is to listen more respectfully than Key Objectives Identified by the Special Committee for Global ever to customers from every Quality region. This demonstrates the • Early Detection and Early Resolution (EDER) based on company's concerted commitment customers' opinions to a fundamental review of our • Human resource development that reinforces our Customer First operational attitudes and our aim approach of establishing a customer interface in every business sector • Assessment by outside experts across Toyota's entities worldwide. • Product development focused on customer safety and The improvement plans worked confidence out by the Committee will be verified and assessed by four • Independence of quality management activities in each region external advisors as well. of the world
India Quality Committee
Quality concerns are an have been taken up to important issue in India as ensure a 'Quality the EFC project is the first Revolution', to reinforce major project for Toyota customer confidence in after the global recall and India and the Asia Pacific quality safety issues. The region alike. small car project has been The India Quality a unique project with many Committee is being new points -the first headed by Mr. Hiroshi country of launch, a Nakagawa, MD, TKM and completely new model, reinforces customer new plant, new segment, confidence by promoting new suppliers and new activities required to dealers. ensure a 'Quality Hence, special activities Revolution'. Proceedings at the IQC activities
Customer First Exhibition
Based on our philosophy of harmonious growth, Toyota Motor Corporation is committed to passing on to TKM the DNA of the Toyota Way, which is defined by our 'Customer First' approach. This approach has helped us form successful relationships with our suppliers and dealers and develop a solid business base in India.
The 'Customer First' exhibition was organized at TKM to motivate the suppliers and the in-house team to design and manufacture quality through flexibility and cooperation keeping the customer in mind. This event provided an opportunity to strengthen the concept of always keeping the customer first, among Glimpses of the Customer First Exhibition (Top left picture: Visit by Hon. our key stakeholders, namely employees and suppliers. Home Minister of Karnataka State to the exhibition)
36 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Special Feature: This activity is aimed at enhancing Product Environment the Team member's Quality Mind Jikotei Kanketsu Awareness through 'Jikotei Stewardship: Kanketsu' (Built-In Quality through (JKK): Built - In Quality ownership). Changing with Ownership Environment Scenario
In the area of quality, which is the The rapidly growing population key focus of the customer first and economic development are policy, TKM has been promoting leading to a depletion of natural company-wide Customer First resources which is causing (CF) activities, with the goal of environmental degradation. The meeting the expectations of absence of required natural customers and society at large, resources can retard the process based on an enhanced of socio-economic development. awareness of relevant issues. The Changing the consumption focus of these activities in 2009- pattern has led to a rising demand 2010 was Jikotei Kanketsu*. for energy. The final outcome of degradation is air pollution, global *Jikotei Kanketsu is the concept warming and severe climate of a defect-free process change. completion to ensure that no defective product leaves the JKK activity review by the TKM Top production process. Management
Toyota in India: Innova Ranked #1 in MUV/MPV segment Toyota India understands in Initial Quality by JD Power Asia Pacific for the need for minimizing the FIFTH CONSECUTIVE YEAR. impact of its vehicles on the environment and the effects it has on climate change and biodiversity. It believes in reducing its impact with the following concepts:
Reducing, Eliminating, Improving and Innovating
Based on our Guiding Elimination of and switched to substances with lesser impact on the environment. Principles, Toyota India Substances of All Toyota products in India (parts takes Initiatives to develop Concern (SOC) and vehicles) are SOC free. and Promote Technologies Chemical substances of concern like Lead, Mercury, Cadmium, and which contribute to the Hexavalent Chromium have a Protection as well as the serious impact on the environment and human health. Toyota initiated Development of Society. the elimination of SOC elements
TOYOTA KIRLOSKAR MOTOR 37 SUSTAINABILITY REPORT 2010
Minimizing Environmental Impact through Eco - Friendly Engines and Vehicles
Products and engines. All Toyota vehicles strives to continuously build meet the Bharat IV emission more fuel efficient vehicles Services norms applicable in India without compromising the since April 2010. pleasure of driving. We As a responsible vehicle continue to make manufacturer, Toyota is Improving improvements in gasoline and engaged in developing a diesel engine technology as it broad array of improvements Gasoline and will remain the mainstay for in fuel efficiency and vehicle the next few decades. Power emissions. Toyota India is Diesel Engine trains that run on a variety of working on lowering the Technology power sources, including fuel environmental impact of its efficient gasoline engines use vehicles through the latest As the main automotive fuel is Toyota's VVT-i technology and emission regulations for its petroleum based, Toyota its common rail direct
Bharat IV Compliant : Toyota D4-D [Diesel] and VVT-i Engines [Petrol]
Toyota VVTi Engine time between the exhaust and vibrations than valve closing and the intake conventional diesel engines. VVT-i (Variable Valve Timing valve opening results in Toyota D-4D engines provide with Intelligence) is an improved engine efficiency. smooth and linear torque and automobile variable valve also high power outputs. The timing technology developed Toyota D4D Engine D-4D's rev range is also wider by Toyota. VVT-i which was than normal which is very introduced in 1996 varies the D-4D stands for Direct useful and further enhances timing of the intake valves by Injection 4 Stroke Common the driving experience. Toyota adjusting the relationship Rail Diesel Engine. It is a uses VVT-i technology for its between the camshaft drive combination of the direct gasoline range of vehicles in (belt, scissor-gear or chain) injection and common rail India, including the Innova, and the intake camshaft. diesel injection systems and Corolla and Camry. The D-4D Engine oil pressure is applied has been designed to provide range of common rail direct to an actuator to adjust the higher output power, better injection engines is used in camshaft position. fuel economy, lower exhaust the Innova, Fortuner, Land Adjustments in the overlap emissions and lower noise Cruiser Prado and also the LC 200.
38 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Moving Forward : With the Government of India enhancing the use of the cleaner fuel, CNG, Toyota India introduced the alternate fuel CNG powered Innova and Corolla in 2009-2010.
CNG Innova and Corolla Altis showcased at Delhi Auto-Expo in January 2010
TOYOTA KIRLOSKAR MOTOR 39 SUSTAINABILITY REPORT 2010
Social Performance - Employees
TKM perceives that human Towards realizing this goal, TKM • Safe working environment resource is the most valuable has imbibed the following four asset to the organization. The point requisite in its activities while • Fair evaluation and proper ultimate objective of human engaging with our employees who treatment resource management is to are our key stakeholders: establish mutual trust and • Creating an environment for responsibility between the • Maintain secure working human resources development company and its employees. conditions
Basic Statistics in relation to the Current Status of Employment The entire workforce based on the type of employment, employment contract, and region.
a. Type of employees b. Unionized and Non-unionized employees
Sl. No. Particulars Number Sl. No. Particulars Number 1 Permanent employees 4109 Unionized employees 1624 2 Temporary employees 1528 Non-unionized employees 2485 Total 5637 Total 4109
Temporary employees 27% Unionized employees 40% Permanent employees 73% Non-unionized employees 60%
40 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010 c. Female Vs. Male employees About 40 percent of the employees are covered by collective bargaining agreements. • In India, the workforce in the automobile manufacturing industry has always been male Sl. No. Particulars Number % dominated and there are very few women. 1 Unionized employees 1624 40% • The local applicable laws do not permit women to 2 Non-unionized employees 2485 60% work between 7 pm and 6 am. • However, since the company works in shifts, female team members are accommodated in the A minimum notice period of 21 days, as per the law is shift from 8:45 am to 5:30 pm. followed in case there are any significant operational changes. Gender-wise Employment Ratio Team members play a vital role in ensuring health and Female 2% safety at the workplace. They are involved in the Male 98% following programs to promote a safe workplace: • Morning safety meeting (KYT) Rate of employee turnover • Safety pledge before work Compared to the industry average of 12 percent, TKM's employee turnover has been very much under • Kaizen activities to improve safety control. • Safety Committees
Sl. No. Employee Turnover 2009 % • Workplace Committees
1 Grade-8 [Blue-Collar] 1.5% 2 Grade-7 and above [White-Collar] 3.4%
TKM does not have any part-time employees. Benefits are provided to full-time employees as per the law of the land. From the mid to long-term point of view, benefits and welfare facilities are provided to all full-time employees. TKM's Labor Management: Providing equal opportunity to all
TKM strongly practices the principle of mutual trust and team work in issues concerning labor management. This involves maintaining thorough communications and promoting fair evaluation and treatment for all.
TKM ensures that there is no discrimination in terms of race, religion, caste, sex, national origin or any other factor deemed unlawful by the applicable laws and regulations. Activities like recruitment, promotion, compensation, benefits, training and the use of facilities are provided to all employees and the policies are also equally applied at all levels.
The following is a brief description of the significant labor management practices at TKM:
1. Coverage under collective bargaining and freedom of association:
TOYOTA KIRLOSKAR MOTOR 41 SUSTAINABILITY REPORT 2010
Occupational Health safety promotion activities • Counselling include: • Annual medical check-up No occupational diseases campaign have been reported due to • Common fevers, H1N1, dengue, malaria and other workplace conditions. Ensuring the safety and health epidemic infection of team members is given the preventions All team members are utmost importance during educated periodically about • Smoking de-addiction formal agreements with trade various diseases. campaign unions. Key issues covered under • Health awareness during occupational health and induction training
comprehending the impact it has on the company and its employees, based on local labor practices and characteristics of the labor market. The benefits, working hours and welfare facilities, along with the wages are comprehensively reviewed from time to time. • TKM reinforces the company's basic philosophy of mutual trust and responsibility and recognizes its team members Joint Declaration signing by Employees Union representative [Left: Mr. Deepak as the most valuable resource RS] and Top management [Right: Mr. H Nakagawa, MD-TKM] of the company. We strive to provide long-term stable All human development programs composition of governance employment and to maintain aim at ensuring a lifelong learning. bodies and the breakdown of and improve working A Work Life Plan is designed to employees per category conditions balanced with the meet the career needs of all team according to indicators of growth of the company. members. diversity. TKM works with diverse communities with people of • TKM complies with local laws The entire workforce is reviewed different ages, religions and from and regulations as far as the regularly on its performance and different geographical regions. local minimum wage is career development. The following concerned. We have a is a brief overview of the Wages standard entry level wage that methodology used: is competitive with comparable The company grasps the abilities • The salary for men and women market levels. This secures the and characteristics of each are equal in the same required human resources and employee accurately and categories. Equal pay for fosters a sense of security objectively, to develop and equal work is practiced at among the employees. maximize the utilization of TKM. • Based on the local labor personnel through performance • Toyota's objective is to raise practices and characteristics appraisal. employee morale and heighten of the labor market, TKM TKM also maintains and raises productivity by providing determines the elements such employee morale by properly wages, which balance the as job classifications, evaluating and rewarding their three aspects of company positions, length of service, abilities and their contribution to cost, employee livelihood, and inflation and commodity prices the company. the market price of labor. which are reflected in the wage system. The opportunity is open to both • The wages are determined men and women in the after accurately
42 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Local hiring policies • In an easier, more efficient way • At a lower cost • As a hiring policy, first of all, a clear-cut clarification of the capabilities and skill sets 'Good thinking, good products' (words by Sakichi required for employment is determined. Toyota) is the baseline for team members to provide their ideas/recommendations. We believe in • The human resources division has an established combining the creative ability of our team members to hiring policy. According to this policy, the hiring make products which will satisfy our customers. On activities are carried out from a company-wide an average, 6000 suggestions are implemented perspective. every month at TKM. • Quantity: Hiring the optimal number of personnel, based on mid to long-term business plans. Highlights of the Suggestion Scheme • Quality: The hiring is based on a comprehensive • Since its inception 4, 92,863 suggestions have perspective including specialized abilities with been implemented! mid to long-term potential. • An average of 44,000 suggestions per year! The following are the activities conducted • About 86,000 suggestions implemented in 2009! while TKM is hiring: • Conduct PR activities (Advertising)
• Establishment of a selection method according to Highlights of the Suggestion Scheme the capabilities and skill sets required • Securing objectivity and fairness within the selection process 106722 100 • Selection process • Induction training and placement 90 80 Employee Development Programs: Creative Suggestion 70 79298 86417 Scheme 60 50 The Creative Suggestion Scheme (CSS) is a concrete example of the effort Toyota makes to utilize the ideas 40 of each employee to build the finest automobile 30 possible. Through this system, the team members of Toyota take it upon themselves to resolve the
No. of Suggestions given by Employees 20 questions and problems that occur at work - to do Kaizen. We strive to receive ideas/recommendations 10 for 0 • Making a better product FY07 FY08 FY09 • With greater safety
QCC Activity Review by TKM Top Management External recognition by CII to TKM QCC Team
TOYOTA KIRLOSKAR MOTOR 43 SUSTAINABILITY REPORT 2010
Employee Development Programs: Quality Control Circle
• Quality Control Circle principles, QC steps and process, it helps to (QCC) is an activity of a QC tools. improve their capabilities group of people in the and facilitates good • QCC helps to generate same workplace. The communication at the ideas and implements the circle members come workplace and ensures a recommendations made together to solve problems better workplace. by circle members. In the according to the QC basic
The company takes every • As part of the induction • No incidents of legal actions measure to prevent corruption in program, anti-corruption for anti-competitive behavior, all its business units. Until now policies and procedures are anti-trust, and monopoly there have been no such explained to all employees. practices have been reported violations. until now. • The whistleblower policy is in • All employees are educated place to create awareness on • TKM strives to ensure a 100 on the organization's anti- corruption issues. percent legal compliance of all corruption policies and local laws and regulations. • Until now, no incident of procedures. corruption has been reported.
Assessment of effectiveness of deployment of resources for the benefit of the community.
TKM assesses its corporate For example: The social responsibilities government education through a regular interaction department and the local with the employees, local Panchayats are involved in government bodies and identifying beneficiaries and people's representatives. distributing education We also conducted a survey materials to the local in 2005-2006 to understand community. Similarly, all the impact of our activities are planned and contributions on the local implemented with the community. involvement of the stakeholders. The company All the stakeholders leadership is always the including the local guiding force behind all community, local activities. The Top government and Management of the government departments company also actively are involved in planning and participates in the activities implementing social implemented by TKM. development programmes.
44 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Social Performance - Society
Books and Bags distribution at the Local community schools Community Development communities. With the objectives a clear vision of growing with the Initiatives of our parent company, Toyota society and is also focused on the Motor Corporation in mind, TKM welfare of its neighborhood. The At TKM, every effort is made to partners with organizations, following are the major contribute to society. Toyota schools, universities and other efforts/activities undertaken by the believes in helping people businesses to support community company in this regard. improve the quality of life in their development programs. TKM has
Education Education plays an important role in shaping our future. Toyota is promoting education by supporting local school children. • Residential School: TKM children. As of 2010, this has re-constructed a programme benefited residential school which more than 5000 local houses 50 students school children from 85 mainly belonging to schools. This is a economically weaker continuous activity, sections at Byramangala, covering an additional ten near TKM's plant in the schools every year. TKM Bidadi Industrial Area. has also contributed library books and • Books and bags laboratory equipment to distribution: Every year educational institutions TKM distributes books and also built the and bags to local school infrastructure needed.
TOYOTA KIRLOSKAR MOTOR 45 SUSTAINABILITY REPORT 2010
Skill Development and Technical Training:
Toyota Technical Training
Institute (TTTI): This secondary education. started in 2007 and takes institute is a state-of-the- The institute is fully in 64 students per year. art facility which provides focused on training only 192 students have a three-year, full-time the rural youth in undergone training as of course on automobile Karnataka and now and a new batch of technology, free of cost successful candidates 64 students joined in to rural students who are given job August 2010. The first have passed their higher opportunities. It was batch graduated in 2010.
[Top] Dr. APJ Abdul Kalam, Former President of India, addressing the first batch of graduating students Glimpses of the Graduation Ceremony and the Plant visit by Dr.APJ Abdul Kalam
Toyota Technical Education Programme (TTEP):
This programme is focused on training the Industrial candidates are given job opportunities at Toyota Training Institute (ITI) students across the country in dealerships. advanced automobile technology. The successful
For the first time in India, a course on Body and Painting is introduced at an institute in 2009. The total no. of institutes implementing T-TEP: 18 The total no. of students who have participated in the T-TEP course: 428
46 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Traffic Safety:
Glimpses of TSEP activity along with Bangalore Traffic Police
Keeping in mind the growing traffic • In 2009-2010, TSEP was the city traffic police to conditions in cities, Toyota has conducted in five metros educate school children on now started to create awareness (Delhi, Mumbai, Chennai, road safety, the forming of on traffic safety among school Bangalore and Kolkata) TSEP clubs in schools (which children through the Toyota Safety covering 100,000 children. was already implemented in Education Programme. The Toyota the previous years but needs Safety Education Programme • In the current year 2010-2011, to be continued) and (TSEP) is an interactive learning the TSEP plans to continue in extending the TSEP reach programme on traffic safety the same cities with special through Toyota dealerships are specially designed for children in modules to sustain the some of the modules. the age group of 6 to 12 years. programme. Partnering with Sanitation programme for the local community
Sanitation program inauguration One of the 310 Project beneficiaries
TKM has conducted a survey on by implementing a sanitation under the Manchanayakanahalli the needs of the local community programme for the local Gram Panchayat. By this activity, around the plant and it was community around the factory the Manchanayakanahalli Gram observed that some villages did catchments area. TKM is Panchayat will achieve total not have the basic toilet facilities in supporting the local community by sanitation and will qualify for the their homes. TKM considered this constructing 310 individual toilets presidential award for total problem and addressed the issue for each household in six villages sanitation in a Gram Panchayat.
TOYOTA KIRLOSKAR MOTOR 47 SUSTAINABILITY REPORT 2010
Environment
Plant visit by Local school children Glimpse of Science fair organized
At Toyota, the commitment to the activities in the local community them on environment environment extends beyond our such as conservation. products. Whether it is planting trees or organizing seminars on • Painting and quiz/project • Distribution of fruit bearing rainwater harvesting for the local competitions for the local plants to all participants of the Panchayats, TKM is working school children in Ramanagara Environment Day event. towards making the local where winners are awarded prizes. • Involving team members and community a better place. conducting plastic free As part of the environment month • Organizing a TKM plant visit campaigns in the local areas. celebration, TKM conducts several for school children to educate
Help During Natural Calamities:
TKM's CSR Activity Expenditure
In Mil. Rs. 120 106.5 108 100 85.5
80
Handing over to Chief Minister of Karnataka [Mr. BS 60 Yediyurappa - 3rd from left]
TKM contributed Rs. 20 million and a day's salary of 40 all its employees to the Karnataka Chief Minister's Relief Fund towards relief and rehabilitation for the North Karnataka flood affected victims in 2009-2010. 20
TKM contributed Rs. 1 million to the Andhra Pradesh Chief Minister's Relief Fund towards relief and 0 rehabilitation for the Andhra Pradesh flood affected FY07 FY08 FY09 victims in 2009-2010.
48 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Social Performance - Business Partners
Dealerships
Toyota does not just limit the Dealer Environmental • Declaration of abidance to law environment protection efforts to its • Proper storage and treatment own premises but encourages its Risk Audit Program of hazardous waste associates, both suppliers and dealers to also do their bit. In (DERAP) - • Proper treatment of drainage India, TKM has been actively Sustenance Tool water involved from the very beginning in • Proper recovery of HFC (AC expanding its corporate social Complementing the ISO 14001 gas) responsibilities. As a part of our certification, this programme is global commitment, our dealers designed by TMC to ensure the Against the set target of 80 also take part in protecting the minimum requirement of percent by TMC, more than 90 environment by minimizing the environment risk management at percent of TKM dealerships have impact of their activities on the dealer workshops. DERAP achieved compliance with this environment through pollution encompasses five crucial aspects programme. This is further driven control, conservation of natural of environment management; by kaizen or continuous resources and continual improvement both by the dealers • Presence of environment improvement. and TKM. promotion staff
TOYOTA KIRLOSKAR MOTOR 49 SUSTAINABILITY REPORT 2010
One of the biggest challenges authorized collectors of hazardous (EMS). ISO 14001 certification faced by TKM dealers is the safe waste. Meanwhile with a three recommended by TKM to its disposal of hazardous waste. At year plan, we will be able to dealers, acts as a tool to structure the dealer level the hazardous achieve an effective and efficient the effectiveness of the EMS wastes have been identified and EMS system at all dealerships. implementation at dealerships. As stored safely. However, the of now more than 70% of our TKM mechanism to collect it from there Dealer ISO 14001 dealerships are ISO certified. At for incineration/recycling is not Certification Promotion remaining new dealerships it is in adequately established in India at progress. It has helped in creating present. To help its dealers TKM supports its dealers to awareness about Environment overcome this plight, TKM has maintain a very effective conscious function at the initiated efforts to identify Environment Management System dealerships.
Nippon Toyota Dealership at Kerala received commendation certificate from Kerala State Pollution Control board for its best Environmental Practices & sustained efforts towards pollution control
Current Dealer Network Total : 82 Outlets [as on March 2010]
50 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
ISO Certification Status of Suppliers [Core]
ISO Certification StatusDERAP Compliance Status
85% Certified 78% Compliant
Certified 70 Under Progress 18 Under Progress 12 Compliant 64
Voluntary Environment campaign in Uttaranchal are some towards preserving the precious Initiatives of the activities that TKM has environment is appreciated by its participated in. customers as well. The customers Taken/Achievements by the gain confidence in their dealers Dealership Such initiatives are duly not only because of the eco- acknowledged by the government friendly products but their service TKM dealers actively participate in too. For example, Nippon Toyota in too. Activities like safe disposal of various initiatives taken by the Kerala has been awarded by the discharged automotive batteries government as well as other State Pollution Control Board for are actively supported by the bodies like SIAM towards three consecutive years. customers. TKM has further plans environment conservation. The to enhance awareness about free pollution check campaign by Customer Recognition environment conservation among SIAM on the World Environment The effort of TKM and its dealers its customers through its Day and the 'Say No to Plastic' dealerships.
Promotion of best environment practices at dealership facilities through DERAP
Wastewater Treatment Safe collection & Recycling of Waste Oil Plant
Segregation & Collection of Waste & recycling
TOYOTA KIRLOSKAR MOTOR 51 SUSTAINABILITY REPORT 2010
Dealer Level Corporate Social Responsibility Activity
• Until today, TKM has experience and feedback to Proposal: conducted CSR activities at owners Conduct CSR activities for drivers the company level only (Clean • With the view of reaching out with the theme 'Health, Safety and Bangalore, flood relief, village to a larger audience before Education'. adoption etc.) the launch of Etios and also as • As more than 50 percent of a brand building activity, there Activity Details: Toyota vehicles are driven by is a need to conduct CSR chauffeurs, they are the activities at the dealer level Activity duration: A total of seven potential interest group for • Dealers have also started days in May 2010 (after 10th May TKM's CSR activities customer retention activities 2010) Target Drivers ~10,000 • Drivers are a strong link for drivers, as a reflection of between the service team and the seasonal service owners and also influence the campaigns CSI ratings based on their
Driver waiting for vehicle Physical Health Check-up 15 Min. Safety Training by Distribution of School Kit service by the Doctor the Dealer and ETIOS Branded T-shirt
Toyota Q-Promise
Towards our aspiration of taking
Toyota closer to our customer's
heart, we have launched the
"Toyota Q-Promise" campaign.
Toyota Q-Promise is to assure
Toyota Quality for delightful
ownership with the core theme of
"Customer First".
52 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Safety Awareness Program at dealership Background importance of 4S and safety. Purpose • As per the study regarding the • As a part of the safety • To encourage and motivate 4S and safety conditions at all awareness program, Ravindu team members to take the dealerships, much Toyota (Bangalore), Lanson required safety precautions at improvement is required. Toyota (Chennai) and Harsha work. Toyota (Chennai) started an in- • To follow safety rules at the • At the dealer technical house safety program by dealership. conference held on November conducting the 'best slogan' 26, 2009, TKM showcased the contest.
Best Slogan Award: The slogan is displayed at all key areas of the dealership to educate team members about safety.
Develop the safety measures today; See the No safety know pains, Use safety process and prevent Accident! healthy world tomorrow. Know safety no pains.
Ravindu Toyota: Lanson Toyota: Harsha Toyota: Winner: Mr. Gopalappa Winner: Mr. Narayana Pillai and Mr. Winner: Mrs. Selvanayaki Elayaraja Best Practice at Vehicle Washing Area: Galaxy Toyota (Azadpur-Delhi)
The professional uniform of the washing Floor mat cleaning and drying done Good 4S condition of the washing area. team indicating area of work. as per TKM recommendations.
TOYOTA KIRLOSKAR MOTOR 53 SUSTAINABILITY REPORT 2010
Business Partners - Suppliers
The automotive sector is subject equipment (OE) suppliers. with the utmost respect to to enormous global pressures to everyone. improve product quality whilst at Toyota has been propagating and the same time reducing cost. undertaking initiatives to all its TKM has been enabling its These pressures impact car consolidated subsidiaries around suppliers to ensure the long-term manufacturers and that has strong the world, to contribute to the and stable procurement of the effects on the flow to suppliers. An harmonious and sustainable best products at the lowest prices innovative, capable and cost development of society and the in the most speedy and timely competitive supplier base is earth. Toyota expects its business manner. TKM also ensures critical to the viability of the Indian partners to support this initiative periodical reviews and confirms automotive industry. Toyota and comply fully with all the status of implementation of the Kirloskar Motor has almost 3500 applicable laws, regulations and activities described in the suppliers, of which 82 are original societal norms both in Japan and guidelines. overseas and conduct activities
54 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
TKM Purchasing Policy. Toyota Kirloskar Motor's fundamental approach to building business relationships has not changed since the foundation of the Toyota Motor Corporation (TMC) 70 years ago. The company's approach is articulated in the Purchasing Mission. A supply based company that gains the respect and trust of society while remaining competitive and long-term provides a stable procurement of the best products at the best prices and in the best
1. Fair competition 2. Mutual benefit based 3. Contributing to the based on an open-door on mutual trust. local economic vitality
policy Mutual benefit based on mutual and being a good Fair competition based on an open trust ensuring that the purchasing corporate citizen. activities are managed by equal door policy supporting TKM's aim Toyota aspires to be a good of continuously improving the business partners and result in an even stronger interdependent corporate citizen by contributing to supplier base and preparing a local economies and societies thus solid foundation for the future. relationship based on openness and honesty. contributing to the company's vision even in these challenging times.
Supplier Development programs: Towards Sustainable Supplier Base
Toyota Basic Approach to promote to implement the same to Toyota is promoting TPS supplier : “SUPPLIER entire scope of supplier operation implementation at suppliers to irrespective of customer. enhance their productivity and PARTNER” achieve mutual growth. Toyota With this, Toyota’s Stable and Kirloskar Motor, through its Supplier development programs sustainable supplier base can Supplier's Association is jointly are designed to give a sense of contribute to the growing Auto working to expand and enhance Partnership to the supplier, Industry in tern to the country's TPS culture among all Toyota through which we can work along economy. suppliers. with supplier partners .
We at TKM, work jointly with Toyota Production System Supplier to implement Toyota [TPS] promotion initiative Production System. The scope of TPS is the key to the success of implementation is not constrained Toyota operations worldwide. to Toyota’s Business , but we
Training to Supplier group and TKM Top Management Visit to Supplier facility as a part of TPS implementation review
TOYOTA KIRLOSKAR MOTOR 55 SUSTAINABILITY REPORT 2010
Quality Circle Competition: To Bring out The identified suppliers will be visited by nominated the Best in the Suppliers members from quality, production, & engineering groups of TKM to understand and implement the Quality Circle Concept: The supplier team solves the best practices. identified problem in their respective companies. To benchmark the Supplier's Gemba QCC: Judges will visit participating Overseas visit : Association activities at TMT / TMMIN. To enhance companies to understand their implementations and TPS implementation and other activities at also guide the QCC team for further improvement. showcased suppliers. Regional QCC: All companies assemble to present their presentations. Regional winners are decided and awarded. Final QCC: Regional winners will compete in the finals. The winners will then be decided and awarded.
Benchmarking visit to TMT [Toyota Motors Thailand]
Safety promotion among supplier Supplier activity review by TKM Top Management companies: TKM has been promoting mutually beneficial safe working practices among its supplier groups as a part of the CSR activities. The basic approach is to promote awareness and inculcate safe working conditions among the members to avoid accidents.
QCC awarding
Kaizen Festival : Kaizen festival is an exhibition where the suppliers display their best kaizen [process improvements] under one roof. Three of the best kaizens will be awarded during Annual Supplier Meet.
Glimpse of Supplier Kaizen festival and information sharing
Showcase visits : Sharing the best practices of identified companies among regional suppliers. Glimpses of Supplier group training on Occupational Health and Safety
56 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Environment Initiatives
Green Purchase performance. In addition to Chromium, Cadmium, Lead and meeting traditional expectations of Mercury have been eliminated Guidelines quality, service and price we give from almost all parts of the Innova, preference to suppliers and Corolla and Fortuner at TKM. Comprehensive environmental products with better social and management means looking Although, there is no requirement environmental credentials. beyond the boundaries of our own or law regarding the end of a operations to the wider supply Reduction in the use of vehicle's life in India, we at TKM chain. TKM has adopted the have proactively taken up in early 'Green Purchasing Guidelines' Substances of elimination. This aims at creating a policy which includes the Environmental Concern better and safe environment for environmental criteria in every the future generations to come as Toyota's global standard promotes purchasing decision we make and the SOCs can be very toxic even the elimination of substances of encourages our suppliers to in small concentrations. environment concern. Hexavalent improve their environmental
Green Purchase Guidelines
ISO 14001 Elimination of Legal Compliance CO2 emission Waste Action Certification SOC Evaluation Control Management Area
Elimination of Ensuring 100% Promote 3R and Ensuring 100% TMC banned Compliance to Logistics reduce certification by Chemicals at Applicable Optimization packaging Action 2011 Plan all Suppliers Legal waste
Acquisition of ISO 14001 requests that all suppliers create • Compliance with environmental Certification: the systems necessary to carry laws and regulations out environmental preservation • Enhancement of environmental activities and constantly improve performance ISO Certification Status of them. To do this suppliers are Suppliers requested to acquire the ISO Reduction of CO2 14001 certification. 98.64% Certified Emissions and the use of Environmental initiatives packing and wrapping related to suppliers materials in logistics: business activities: The transportation of goods results In addition to the initiatives taken in the consumption of energy and by Toyota Motor Corporation reducing this consumption of (TMC), Toyota Kirloskar Motor energy becomes a major issue. Thus, TKM undertakes active Certified 74 (TKM) has set ambitious targets to work on various environmental measures to reduce CO2 Under Progress 1 improvement activities. Suppliers emissions (energy consumption) delivering parts, raw materials and in logistics. TKM is also working to Toyota Kirloskar Motor undertakes supplementary materials should reduce the use of packaging and the systematic management of also take an active approach to wrapping materials. The suppliers environmental preservation environmental initiatives as a part involved are also requested to activities and works to of their business activities. implement environmental continuously improve them. TKM measures in their logistic activities.
TOYOTA KIRLOSKAR MOTOR 57 Economic Performance SUSTAINABILITY REPORT 2010
Economic Performance
The Indian automobile industry which symbolize the Toyota 2015. This will be achieved demonstrated its resilience in the touchstone of refined quality and through the launch of its small car face of a global downturn in 2010 high dependability. TKM has also Etios, another first for TKM and by racking up sales of over 1.95 clearly announced its green vision Toyota. This prestigious project million cars. During the same with its widely acclaimed Toyota has been executed with an outlay period, TKM has introduced new Greenathon campaign and the of Rs 3,200 crore and was recently models like the Fortuner and the introduction of the world renowned introduced in the market. With this, Land Cruiser and achieved an all Prius, the only mass produced TKM will be a force to reckon with time high sales of 63,824 hybrid vehicle. in the demanding Indian auto numbers, representing a growth of market. 36 percent. TKM now has an TKM has targeted the growth of its impressive array of vehicles all of market share to 10 percent by
Rs. in Mil Key Financial Data 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006
Net Profit after Tax 3,093 1,226 2,073 1,057 534 Sales Revenue 56,037 37,603 41,016 37,344 33,352 Capital Expenditure 1,176 1,921 544 638 412 Total Assets 15,768 14,663 12,847 12,447 11,842
Production / Share of Turnover Market Share Product / Outputs* (%) [in respective segments] (%) Services
07-08 08-09 09-10 07-08 08-09 09-10 07-08 08-09 09-10
1. INNOVA 35 34 32
2. COROLLA 53,774 46,251 63269 78 77 84 15 27 23
3. FORTUNER --54
4. CAMRY 24 9 6
5. PRADO 1,295 492 504 5 3 3 64 25
6. LAND CRUISER -- 2
7. Traded Parts 176190 134412 17 19 14
TOYOTA KIRLOSKAR MOTOR 59 SUSTAINABILITY REPORT 2010
Special Feature: Delhi Auto Expo Jan-10
leveraging the world-class innovations that Toyota is globally renowned for. Etios is a Greek word and is derived from the word 'ethos' which means 'values'.
The concept cars were unveiled in the presence of Mr. Kazuo Okamoto (Vice Chairman, Toyota Motor Corporation), Mr. Akira Okabe (Senior Managing Director, Toyota Motor Corporation), Mr. Yashinori Noritake (Chief Engineer, Product Planning for Passenger Vehicle, Toyota Motor Corporation), Mr. Vikram Kirloskar (Vice Chairman, TKM), Mr. Hiroshi Nakagawa (Managing Director, TKM) and Mr. Sandeep Singh Etios Concept unveiling by TMC and TKM Top Management (Deputy Managing Director, Marketing, TKM). The 10th Auto Expo was held at Toyota Kirloskar Motor Pvt. Ltd. Pragati Maidan, New Delhi from (TKM) re-emphasized its Mr. Hiroshi Nakagawa, MD, TKM January 5-11, 2010. This seven commitment to the Indian market further explained the theme, "At day event was organized by the with its theme of 'Quality Toyota, we believe that as we start Automotive Component Revolution' at the Auto Expo 2010. developing our processes, there is Manufacturers Association of India One of the main attractions at the room for continuous improvement. (ACMA), Confederation of Indian Auto Expo was the display of the We then create bigger innovations Industry (CII) and the Society of Toyota compact car. for our cars and every little Indian Automobile Manufacturers improvement is a step towards a Association (SIAM) accredited by Toyota Kirloskar Motor Pvt. Ltd. revolution. In short, 'Quality OICA. (TKM) unveiled the concept model Revolution' at Toyota begins with of its soon to be launched new The seven day Auto Expo was quality processes that help to compact cars in India. Named as make quality products with quality visited by over two million the Etios concept, it incorporates enthusiasts who came to catch the comfort, in turn, necessitating and the advanced technology and bringing about quality service, buzz surrounding some of the superior quality features that have most advanced cars showcased thereby improving one's quality of been developed by Toyota life for a better tomorrow." by global majors. specifically for India, by
Toyota Etios Sedan
60 TOYOTA KIRLOSKAR MOTOR SUSTAINABILITY REPORT 2010
Special Feature - Prius Launch in India
Left: Prius launch at Auto Expo 2010. Right: Appreciation of Prius by Noble Laureate Dr. RK Pachauri [Director-TERI] Moving forward towards Greener Tomorrow : Toyota Prius for India Toyota is committed to bringing (TKM) launched the latest third launch of the Prius, Toyota is keen the latest technologies to India generation Prius in India at the to demonstrate its commitment to that will help reduce the carbon Auto Expo in January 2010. Toyota offer the latest eco-friendly footprint associated with its Prius will be imported as a CBU automotive technology to its product use. In addition to the fuel (Completely Built Unit) and customers in India. Since efficient and low emission Petrol marketed through its wide dealer becoming the world's first mass- and Diesel engines, Toyota has network across India. produced hybrid vehicle in 1997, introduced the globally renowned the Prius has received worldwide Hybrid Technology in India. Speaking about the Prius launch acclaim, and we will continue to in India, Mr. Sandeep Singh, DMD- popularize hybrid vehicles Toyota Kirloskar Motor Pvt. Ltd. Marketing, TKM said, "Through the worldwide to further our efforts to
Special Feature : Toyota NDTV Greenathon II
was conducted to create environmental awareness and Toyota in association with NDTV telecasted Greenathon II, a 24 hour live non-stop programme which started at 7 pm on March 6, 2010 across the NDTV network television channels. The programme showcased a series of on-the-ground activities all over India.
The 24 hour programming was hosted by NDTV's Vikram Chandra and VJ Cyrus Broacha. Priyanka Chopra, the campaign After a hugely successful first The first campaign had gathered ambassador lent her support to year, NDTV and Toyota came up over Rs. 2 crore to light up 50 the cause by co-anchoring the with the second wave of the villages in India for TERI's event and urged people to do 'Green Campaign' which included 'Lighting a Billion Lives' project. the 24 hour non-stop television their bit for a greener tomorrow. programming of 'Greenathon II'. The nationwide Green Campaign
TOYOTA KIRLOSKAR MOTOR 61 The ultimate test of man's conscience is his willingness to sacrifice something today for future generations..."
— G Nelson Former governor of Wisconsin, Co-founder of Earth Day
For further information and feedback on this Report please contact:
Safety & Environment Dept., Plant Administration Division, TOYOTA KIRLOSKAR MOTOR PVT. LTD Plot No.1, Bidadi Industrial Area, Bidadi, Ramanagar Dist. Pin: 562 109. Karnataka, India Tel: +91-80-66292098 / 66292382 Fax: +91-80-27287076 / 77 Email: [email protected] www.toyotabharat.com
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