The Indian subsidiary of the Japanese car maker, Toyota India, is all set to start manufacturing the powertrains in its Bengaluru plant from August 2012. It was almost a year back when the company had made an announcement on increasing the manufacturing capacity in India. This was basically for meeting the demand for Etios Sedan and Liva Hatchback. These are exported to South Africa from Ennore port near Chennai. The company has already exported 1,500 units till date and has now commenced the exports again.

The plant in Bengaluru will produce 1 lakh passenger car powertrains and 2.4 lakh transmission units. The plant required an investment of Rs. 500 crore. Export of these cars by the company require better access route the port. At the same time, the company will have to look at improving the facilities in and around the port. The plant which is situated 32 kilometers from Bengaluru, plays a vital role in the Asia-Pacific strategy of Toyota Motor Corp. The company has a target of 10 percent market share in India in next five years.

The company to reach its goal, entered the mass market with its Etios sedan in December 2010 and the Etios Liva hatchback last year. As the plant starts manufacturing, the Etios and Liva petrol variants will be 90 percent localized, up from the current 70 percent. Of course the goal is to attain 100 percent localization which no one till date has attained. The profits of the company will totally depend upon this as localizing the engine and transmission manufacturing will cut the cost by 11 percent according to the company officials.