Toyota to cut output in India by 70%
The Toyota motor of Japan is going to stop its production at its Indian subsidiary between April 25 and June 4 by up to 70% due to the break of supplies because of the earthquake and tsunami that occured in the northeast regions of Japan last month.The production cut will be on every Monday and Friday during this time period.Similar production cuts have been announced in Japan, China, North America and Europe.
The Managing Director of Toyota Kirloskar Motor Limited,Hiroshi Nakagawa quoted that this is a necessary response to a short-term supply issue and they intend to restore normal operations as soon as possible and their focus is on ensuring optimum stock management to reduce the impact on their customers from the immediate production shortfall.
The Deputy MD of TKML,Mr.Sandeep Singh revealed that it is a temporary measure to adjust production as per the supplies from their overseas locations. Based on the availability of components in future, they will chalk out their future strategy.He also added that they anticipate another month of waiting for most of the models that currently ranges from one month to three months due to this production schedule.
The company spokesperson informed that they are looking at possible options to get over any kind of crisis, but some of the components sourced directly from Japan may interrupt regular production in future.In India, Toyota produces the multi-utility vehicle Innova, premium sedan Corolla Altis, SUV Fortuner, and the Etios sedan, which has a long waiting period.