Toyota Kirloskar Motor (TKM), a JV between Toyota Motors and Kirloskar Group is likely to cut down on its Rs 3,200 crore investment plan to launch its small car in India.
The investment is likely to be lowered due to the fall in raw material prices like steel whose prices were much high when the company chalked out its investment plan. Besides, TKM has been planning to increase sourcing of components from India to Toyota's Japan and Thailand units to reduce operational costs of Toyoto due to the depreciation of Indian rupee compared to Japanese Yen.
In 2008, TKM had announced to invest Rs 3,200 crore for launching a small car by 2010 from its upcoming second plant, being constructed near its first facility in Bangalore.
Source : ProjectsToday
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