Toyota may hold 70% stake in car JV

BANGALORE, June 1: The joint venture between the Japanese automobile giant Toyota and the Pune-based Kirloskar group for manufacturing ligh...

BANGALORE, June 1: The joint venture between the Japanese automobile giant Toyota and the Pune-based Kirloskar group for manufacturing light commercial vehicles for the Indian market has been finalised to be a 100 % equity by the partners with no external dependence.

According to Vikram Kirloskar of the group, his company would have only a minority participation in the venture. Company sources said Toyota would hold 70 % equity with the remaining left to Kirloskars. The auotmobile project with an outlay of $ 340 million would have a participation of $ 240 million by the Japanese which would include the associated infrastructure for the project.

It has been finalised to be a 100 % equity to commence production at the earliest. “This is something we are learning from the Japanese,” he said, adding, “least external dependence will enable us to begin production early by completing the project in the shortest time possible.”

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Kirloskar said the joint venture would be launched on July 24, contrary to the earlier projection of June. The first Indian made Toyota vehicle would be available to Indian customers as early as 1999.

The popular Toyota Corolla model would not be launched first, Kirloskar said, and added that “it would be launched only on a later stage.” According to company sources, a 10-seater sports utility Kijang model with a 1500 cc diesel engine would be the inaugural launch.

Kirloskar said the feasibility study and the project definition phases of the joint venture project were over and the remaining procedures were being completed.

Company sources said the project would in all likelihood be located near Bangalore. The plant would have an initial annual production capacity of 20,000 to 30,000 vehicles.

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Toyota company sources said negotiations were on with Daihatsu, a Toyota affiliate for captial participation.

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