Toyota building new diesel engine plant in Bengaluru

Toyota is building a new diesel engine plant in Bengaluru. The facility, which will formally be commissioned in the third week of June, will cater to the domestic market.

The company is investing Rs. 1,100 crore in the new plant, which will have an annual manufacturing capacity of 1,08,000 units. It will be Toyota's first diesel engine plant in India and is expected to generate employment for more than 500 people. Toyota has decided to open this plant despite the recent ban on diesel cars in the national capital.

The company is also increasing the level of localisation in its parts. At present, 77 parts are localized through 23 vendors. 65 more parts are being localized through 29 vendors. This will cover 35% of all parts.

With its new range of vehicles, the company is replacing the KD series of diesel engines with the new GD series. The new engine complies with Euro 4 (BS-IV) emission norms. Toyota claims that it is possible to upgrade it to comply with Euro 5 and Euro 6 norms with minimum investment and lead time. In Japan and Thailand the same engine is already being manufactured to comply with higher emission norms.

Source: ET Auto