Toyota Kirloskar Motor (TKM) will invest Rs500 crore for setting up an engines and transmission plant for its Etios sedan and hatchback cars.
"We have already invested Rs3,200 crore to develop Etios car project. We are also investing Rs500 crore to develop engines and transmissions for the Etios sedan and hatchback cars," Toyota Kirloskar Motor deputy managing director (marketing) Sandeep Singh said on the sidelines of the launch function of Etios.
Setting up of an engines and transmission plant, expected by the third quarter of 2012, will help increase localisation of the Etios to 90 per cent from the current 70 per cent, TKM managing director Hiroshi Nakagawa said.
"By 2012, we will commence transmission production in India, followed by the engine in 2013," Singh said.
TKM, which made an entry into the highly competitive B segment of the car market in India, plans to launch the hatchback Etios Liva next April.
The Etios sedan currently comes in four variants - J, G, V and VX - priced between Rs4,96,330 and Rs6,82,519 ex-showroom in Mumbai.
TKM, which sells the sedans, Toyota Corolla Altis and Camry along with the multi-utility vehicle Innova, hopes to double sales in India to 1,40,000-1,50,000 units next year on the back of Etios and Liva.