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Toyota and Honda to tap alternative market
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Wednesday, 30 Nov 2011
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Japanese car majors Toyota Kirloskar and Honda Siel are looking for alternative component sources as a flood crisis in Thailand, a key component supplier in Asia, has hit supplies and disrupted production at their facilities in India.

Toyota, which is estimated to incur a production loss of 800-1,000 vehicles or 8 to 10% of total output due to the supply disruption, is diverting spare parts meant for plants in Indonesia and the Philippines to keep up production for the waiting Innova and Fortuner customers in India.

Honda Siel, which has suffered an output loss of more than 60 to 70%, is in negotiation with alternative sources from China and Japan to bring back normalcy in production.

Mr Sandeep Singh deputy managing director marketing at Toyota Kirloskar said that "Toyota Motor Asia Pacific has given India the top-most priority. It is helping us by sourcing and diverting components, meant for Indonesia and Japan, here to sustain our good growth. Through this arrangement we will have spare parts supply till the end of the month.”

A three-month long crisis triggered by unusually heavy monsoon rains has left several hundreds people dead in Bangkok and disrupted industrial hubs mostly in northern and central Thailand, which will take at least a few months for them to resurrect.

Toyota imports some of the key engine components for Fortuner and Innova from Thailand, while Honda Siel imports under-body parts and electronic parts.

(Sourced from ET)

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