Toyota to benefit from free trade agreement
The inking of Indo-Thai trade agreement seems to have motivated the world’s largest car maker Toyota to seek high from Indian market for the small cars – the company’s hub to be India. Already some auto parts got this privilege and Free Trade Agreement might invite other car makers too- on a particular duty free concept. Toyota is on the line of importing engines for Innova and Corolla Altis from Thailand unit while the spares of Fortuner (suv) (80% imported) are in assembly mode in Bangalore unit. Toyota’s other models Camry sedan, Prado and Land Cruiser are all imported units and the company may benefit if these cars get the advantage of FTA – 7 -10% duty reduction. The company foresees a dramatic change in its marketing if the Indian small car hub materialises smoothly. With an investment of Rs3200 crores in its Bangalore unit, the company is pinning on the increased production- from the current capacity of 80000 units a year to 2 lakh cars in another three years. With this Indian hub, Toyota has chalked out its strategy to export its models to global market and to reap the global profit.