Toyota Kirloskar Motors (TKM) will commence production of engines at its Bangalore facility in next month. The company officials confirmed the update; however, no additional details are provided at the moment.
The Japanese car maker had earlier confirmed the plans of building the Etios engines and transmission in India. The planned set up will have capacity to produce 1 lakh units of engines and 2.4 lakh units of transmission, which will probably be also used for exporting engines and transmissions to other developing countries.
These operations will certainly reduce the import taxes for the company, and will also achive economies of scale through export operations. Some of the above benefits might be transferred to Indian buyers through price cut on the Etios and Liva, in the coming months.
