NEW DELHI, April 23 (Agencies): Japan’s Toyota Motor will cut production at its Indian subsidiary by up to 70% between April 25 and June 4 due to disruption of supplies following last month’s earthquake and tsunami in the country’s northeast. The two Bangalore-based plants of Toyota Kirloskar Motors, the joint venture between Toyota and the Kirloskar group, will not operate on Mondays and Fridays during the period.
The restructured production plan will see about 7,000 fewer vehicles being produced a month, leading to a revenue loss of around 500 crore for the Indian subsidiary. The world’s biggest automaker produces 11,000 units a month at its JV, in which it holds 89% equity. “It is a temporary measure to adjust production as per the supplies from our overseas locations. Based on the availability of components in future, we will chalk out our future strategy,” said Sandeep Singh, Toyota Kirloskar Motor’s deputy MD (marketing). In India, Toyota produces the multi-utility vehicle Innova, premium sedan Corolla Altis, SUV Fortuner, and the Etios sedan, which has a long waiting period.
Honda, Suzuki Face Similar Problems
“We anticipate another month of waiting for most of the models that currently ranges from one month to three months due to this production schedule,” Singh said. Japanese carmakers Suzuki and Honda, which have large units in India, were anticipating similar problems in sourcing critical parts from home companies.
Honda Siel Cars expects some production bottleneck from May, when its stock of critical parts could go dry. “We are looking at possible options to get over any kind of crisis, but some of the components sourced directly from Japan may interrupt regular production in future,” a company spokesperson said. Suzuki, which operates in India through Maruti Suzuki, may face problems from tier-II supplies.
The restructured production plan will see about 7,000 fewer vehicles being produced a month, leading to a revenue loss of around 500 crore for the Indian subsidiary. The world’s biggest automaker produces 11,000 units a month at its JV, in which it holds 89% equity. “It is a temporary measure to adjust production as per the supplies from our overseas locations. Based on the availability of components in future, we will chalk out our future strategy,” said Sandeep Singh, Toyota Kirloskar Motor’s deputy MD (marketing). In India, Toyota produces the multi-utility vehicle Innova, premium sedan Corolla Altis, SUV Fortuner, and the Etios sedan, which has a long waiting period.
Honda, Suzuki Face Similar Problems
“We anticipate another month of waiting for most of the models that currently ranges from one month to three months due to this production schedule,” Singh said. Japanese carmakers Suzuki and Honda, which have large units in India, were anticipating similar problems in sourcing critical parts from home companies.
Honda Siel Cars expects some production bottleneck from May, when its stock of critical parts could go dry. “We are looking at possible options to get over any kind of crisis, but some of the components sourced directly from Japan may interrupt regular production in future,” a company spokesperson said. Suzuki, which operates in India through Maruti Suzuki, may face problems from tier-II supplies.
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