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Toyota Kirloskar Motor Pvt Ltd

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Toyota Kirloskar Motor Pvt Ltd TOYOTA KIRLOSKAR MOTOR PVT LTD Background Established in 1997 as a joint venture between the Kirloskar Group and the Toyota Motor Corporation (TMC), Toyota Kirloskar Motor Private Limited (TKM) has grown rapidly to emerge as a significant player in India’s passenger car and MUV market segments. The company has a long-term goal in India and aims to play a major role in the development of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries. Toyota had a turnover of USS 587.5 million last year, and the company has started making profits from last year. Toyota has brought in US$ 152 million in equity, and has invested another US$ 40 million from internal accruals. Toyota employs 2,300 people in India. TKM, along with its dedicated dealers and suppliers, has adopted the “Growing Together” philosophy of its parent company, TMC, to create long-term business growth. In this way, TKM aims to further contribute to progress in the Indian automotive industry, realise greater employment opportunities for local citizens, improve the quality of life of its team members and promote robust economic activity in India. FORTUNE 500 COMPANIES IN INDIA PAGE 164 Well-established in the MUV the 1990s, Toyota decided to enter India through and passenger car segments the MUV segment. This was based on an extensive market study and analysis that indicated the potential Toyota first entered the Indian automotive market in for a world class MUV that would offer the driving the MUV segment with the launch of the Qualis model experience of a car, at an affordable price. The MUV in 2000. The model was instantly popular and quickly segment at that time had two major players – Tata grew within a short span of 2 years to capture 20 per Motors and M&M, whose products, while rugged cent market share from established players like M&M and reliable, were not seen as substitutes for a car. and Tata Motors. Thus, while other MNCs were competing for share Quick on the heels of Qualis’ success, TKM launched in an increasingly crowded passenger car market, two passenger car models – Camry in 2002, in the Toyota was established itself in the MUV segment. high-end luxury segment and Corolla in 2003, in the luxury segment. Both cars have again proved popular World class manufacturing processes and registered impressive growths – Corolla sold 9,546 and practices units in 2003-04, capturing 40 per cent of the segment The Toyota Production System (TPS), originally a share, while Camry has also grown at 140 per cent means of achieving mass-production efficiency with a to 1,117 units during the last year. small production volume of a few thousand vehicles per year, has become a sought after best practice for Factors for success achieving highly efficient ‘lean manufacturing’ for Toyota’s success in India has been due to several manufacturing industries worldwide. Just-in-time (JIT) factors – a renowned brand, world-class manufacturing production and in-process quality assurance are processes and practices, in-depth market analysis, hallmarks of the TPS, which is applied throughout the superior product quality and committed employees. company’s global production structure. Also, Toyota’s world class research and development Leveraging brand strength has made possible technological advancements in Even before its entry into India, the Toyota brand quality manufacturing, safety, efficiency and was well known in India and had a strong aspiration environment preservation, all of which contribute to value. Toyota also reinforced its technical strength enhancing customer satisfaction. and customer care through innovative ad campaigns. Committed employees In-depth market analysis True to its belief that the employees are the main Despite strong growth in the passenger car market in source of strength for an organisation, Toyota seeks SUCCESS STORIES PAGE 165 to create a corporate culture where values such as Developing India as a global source “Continuous Improvement” and “Respect for People” for auto parts are fully reflected in all actual corporate and individual Toyota has set up Toyota Kirloskar Auto Parts Limited, activities. The company takes maximum care to ensure to produce transmission components (gear boxes) stability of employment and strives to improve working for its global operations. conditions. Apart from this, it also made fresh investments last TKM’s young team members are regularly sent to year into its JV Kirloskar Toyota Textile Machinery Japan, Indonesia and Taiwan for training. More than Limited (KTTM), to build capability for producing auto 400 team members have benefited from such components there. Toyota officials say, “The venture programmes at various Toyota plants worldwide. The has been making textile machinery in India. But with company also has an ongoing suggestions scheme that seeks to increase and reward employees’ commitment and involvement. Leveraging the India Advantage Availability of technical manpower Availability of technical manpower is critical to Toyota’s strategy of manufacturing locally as opposed to imports. One of the key strengths Toyota sees in India is the availability of technical manpower from premier engineering, diploma and ITI institutions. In addition this, manpower comes at an attractive wage providing good return on investment. FORTUNE 500 COMPANIES IN INDIA PAGE 166 the global automotive business expanding, we now intend to utilise this venture for also making low cost components in India to complement our transmission venture here”. Both plants are 100 per cent export oriented units, and reinforce Toyota’s commitment to developing India as a sourcing hub for auto components. Future plans Toyota plans to increase its market share in the MUV and car markets, alongside increasing productivity. Toyota expects to grow 10 per cent per year in the future. Toyota will also plan to continue working with component manufacturers to help/guide them on quality, cost and delivery. Toyota plans to invest US$ 28.3 million to increase production capacity from 45,000 to 60,000. SUCCESS STORIES PAGE 167.
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