Localization levels are expected to increase to 80 percent.
Toyota's Indian subsidiary, Toyota Kirloskar Motor (TKM), will soon start manufacturing diesel engines in India, says a report on the Business Standard. Set up on the outskirts of Bangalore near Jigani, the engine manufacturing plant will start trial production soon, and commercial production will start in early-2016.
Speaking to the publication, T S Jaishankar, deputy managing director, commercial for TKM, said that the engine plant will cater to Innova and Fortuner models. TKM currently imports diesel engines for these cars from Japan.
The plant will have a capacity of 100,000 units annually and comes at an investment of INR 800 crore. It will allow TKM to increase localization on the Innova and Fortuner to 80 percent, the report states.
The Innova and Fortuner will move to their next generation model come 2016. For the international market, the 2016 Fortuner and 2016 Innova are expected to make use of the new 'GD' range of diesel engines, which comprises of 2.4- and 2.8-liter units. However, it remains to be seen if these new diesel engines will be offered on the Indian model.
The new Fortuner will reportedly be revealed in Thailand in July this year whereas the Innova could be revealed towards the end of 2015.
[Source - Business Standard]