INDUSTRY PROFILE

The automotive industry designs, develops, manufactures, markets, and sells the
world's motor vehicles. In 2015 estimated rate of growth of India auto industry is
going to be 10 percent. Auto industry in India has been hit hard by ongoing global
financial recession. Sales figures of India automobile industry for December 2008
have shown devastating after effects of global financial slowdown. In 2008, more than
70 million motor vehicles, including cars and commercial vehicles were produced
worldwide. In 2007, a total of 71.9 million new automobiles were sold worldwide:
22.9 million in Europe, 21.4 million in Asia-Pacific, 19.4 million in USA and Canada,
4.4 million in Latin America, 2.4 million in the Middle East and 1.4 million in Africa.
The markets in North America and Japan were stagnant, while those in South
America and Asia grew strongly. Of the major markets, Russia, Brazil, India and
China saw the most rapid growth.

About 250 million vehicles are in use in the United States. Around the world, there
were about 806 million cars and light trucks on the road in 2007; they burn over 260
billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly,
especially in China and India. In the opinion of some, urban transport systems based
around the car have proved unsustainable, consuming excessive energy, affecting the
health of populations, and delivering a declining level of service despite increasing
investments. Many of these negative impacts fall disproportionately on those social
groups who are also least likely to own and drive cars. The sustainable transport
movement focuses on solutions to these problems.

In 2008, with rapidly rising oil prices, industries such as the automotive industry are
experiencing a combination of pricing pressures from raw material costs and changes
in consumer buying habits. The industry is also facing increasing external competition
from the public transport sector, as consumers re-evaluate their private vehicle usage.
Roughly half of the US's fifty one light vehicle plants are projected to permanently
close in the coming years with the loss of another 200,000 jobs in the sector, on top of
the 560,000 jobs lost this decade.
AUTOMOTIVE INDUSTRY IN INDIA

The Automotive industry in India is one of the largest in the world and one of the
fastest growing globally. India manufactures over 17.5 million vehicles (including 2
wheeled and 4 wheeled) and exports about 2.33 million every year. It is the world's
second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million
in 2009. India's passenger car and commercial vehicle manufacturing industry is
the seventh largest in the world, with an annual production of more than 3.7 million
units in 2010. According to recent reports, India is set to overtake Brazil to become
the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to
sell around three million units in the course of 2011-12. In 2009, India emerged
as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea,
and Thailand.

As of 2010, India is home to 40 million passenger vehicles and more than 3.7 million
automotive vehicles were produced in India in 2010 (an increase of 33.9%), making
the country the second fastest growing automobile market in the world. According to
the Society of Indian Automobile Manufacturers, annual car sales are projected to
increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050,
the country is expected to top the world in car volumes with approximately 611
million vehicles on the nation's roads.

A chunk of India's car manufacturing industry is based in and around Chennai, also

known as the "Detroit of India" with the India operations of Ford,
Hyundai, Renault and Nissan headquartered in the city and BMW having an assembly
plant on the outskirts. Chennai accounts for 60 per cent of the country's automotive
exports. Gurgaon and Manesar  in Haryana are hubs where all of the Maruti
Suzuki cars in India are manufactured. The Chaka corridor near Pune, Maharashtra is
another vehicular production hub with companies like General
Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes
Benz, Land Rover, Fiat and Force Motors having assembly plants in the
area. Ahmedabad with the Tata Nano plant

GeneralMotors, Aurangabad with Audi, Skoda and Volkswagen, Kolkatta with Hindu
stan Motors, Noida with Honda and Bangalore with Toyota are some of the other
automotive manufacturing regions around the country.
COMPANY PROFILE
HISTORY OF TOYOTA
Towards the end of the nineteenth century, Sakichi Toyoda invented Japan's first
power loom and in the process revolutionised the country's textile industry. January
1918 saw him create the Toyoda Spinning and Weaving Company, and with the help
of his son, Kiichiro Toyoda, Sakichi fulfilled his lifelong dream of building an
automatic loom in 1924. The establishment of Toyoda Automatic Loom Works
followed in 1926.

Kiichiro was also an innovator, and the visits he made to Europe and the USA in the
1920s introduced him to the automotive industry. With the £100,000 that Sakichi
Toyoda received for selling the patent rights of his automatic loom, Kiichiro laid the
foundations of Toyota Motor Corporation, which was established in 1937.

One of the greatest legacies left by Kiichiro Toyoda, apart from TMC itself, is the “
Toyota Production System” (TPS) and Kiichiro's "just- in-time" (JIT) philosophy
-producing only precise quantities of already ordered items with the absolute
minimum of waste viz. a key factor in the system's development. Progressively, the
‘Toyota Production System’ began to be adopted by the automotive industry across
the world.
Rising from the ashes of industrial upheaval in post-war Japan, Toyota has become
the largest vehicle manufacturer in Japan with over 40% market share. Toyota began
to make inroads into foreign markets in the late 1950s. The first Crown models
arrived in the USA in 1957, and by 1965, with models such as the Corolla, Toyota
began to build its reputation and sales to rival those of domestic producers. The first
Toyota imported into Europe was via Denmark in 1963. Toyota has continued to grow
in Europe's sophisticated and complex market, and in 2000 the company delivered its
ten millionth cars to a customer in Germany. In fact, growth is currently one of the
main words in Toyota's European vocabulary .Toyota is number one for customer
satisfaction in the majority of European countries and has built an excellent reputation
across Europe for reliability and customer service. This enviable reputation, along
with the support of a network of more than 25 distributors and 3,500 sales outlets, are
important factors in supporting Toyota's European sales growth in the coming years.
In less than 70 years, Toyota Motor has gone from being a tiny spin-off of a textile
loom maker to the world's biggest automaker, guided by a culture of "kaizen", or
continuous improvement and a tireless effort to eliminate waste.

We see this corporate tradition continue through decades of its existence. Since the
company manufactured its first passenger vehicle in 1936, Toyota has continuously
pursued the number one position for total customer satisfaction in all areas, ranging
from manufacturing and products to sales and service. Toyota exported its first
Japanese-made passenger car to the United States in 1957. Since then, Toyota has
steadily expanded its global presence with the establishment of overseas bases.

Toyota's Lexus and Toyota branded vehicles rank annually among the world's highest
quality cars in third party surveys of customer satisfaction. Using such success as a
springboard, Toyota is pursuing a policy of sustained development and hopes to use
innovation and strong R & D to create cars that are greener, safer and more fun to
drive. 

As a global company, Toyota realizes that local commitment is a prerequisite to

success on a worldwide scale. Toyota's activities are highly appreciated around the
world, a result of the company's devotion to customer-oriented activities and social
contributions in every market it operates.

HISTORY OF THE KIRLOSKAR GROUP

The Kirloskar Group is India’s largest engineering and construction conglomerate.

The Kirloskar Group is made up of 8 major group companies which export to over 70
countries. The Indian promoter Kirloskar group is a century old industrial legacy
having a strong presence in various segments of engineering industry. The Kirloskar
group is engaged in manufacturing of transformers, electric motors, diesel engine,
compressor, machine tools etc. it also has its presence in industrial casting and
pollution control equipment manufacturing. The group is mainly concentrated its
manufacturing facilities in and around Karnataka and Maharashtra

Today, the Kirloskar Group is a conglomerate with interests across a diverse range of
industries. It is still spurred by the simple yet profound ethic born with Laxmanrao
Kirloskar that where there is will there are many ways.

TOYOTA KIRLOSKAR MOTOR

LOGO:

Toyota Kirloskar Motor Pvt. Ltd

TKM is a joint venture between TMC, Japan and Kirloskar Group, India.

As a joint venture between the Kirloskar Group and Toyota Motor Corporation,
Toyota Kirloskar Motor Private Limited (TKM) aims to play a major role in the
development of the automotive industry and the creation of employment
opportunities, not only through its dealer network, but also through ancillary
industries.

TKM's growth since inception can be attributed to one simple, yet important aspect of
its business philosophy -" Customer First". While managing growth, TKM has
maintained its commitment to provide quality products at a reasonable price and has
made every effort to meet changes in customer needs.
TKM firmly believes that the success of this venture depends on providing high
quality products and services to all valued customers through the efforts of its team
members. 

TKM, along with its dedicated dealers and suppliers, has adopted the "Growing
Together" philosophy of its parent company TMC to create long-term business
growth. In this way, TKM aims to further contribute to progress in the Indian
automotive industry, realise greater employment opportunities for local citizens,
improve the quality of life of the team members and promote robust economic activity
in India. 

All Toyota employees are expected to embody these values in their daily work,
including environmental protection activities. To "respect" the environment, we go to
the source to identify and analyse problems ("Genchi Genbutsu"), move forward to
"challenge" conventional ideas and old habits, to improve further ("kaizen") through
"teamwork."

The framework provided by ‘The Toyota Way’ enables our company to respond to,
among other things, the environmental challenges at various stages of the life-cycle of
a vehicle. These include greenhouse gas emissions, waste reduction, increased
recycling and the banning of hazardous substance use in parts and components. These
challenges will have inevitable consequences for Toyota's organisation and
employees, and we must balance them with our desire for future growth. In 1992, the
Toyota Guiding Principles were established in direct response to the international
initiatives agreed to at the Rio 'Earth Summit.' This summit focussed on the potential
for a clash between trade and environmental rules, and resulted in a statement of
principles about forest management, conservation and sustainable development.

The Toyota Guiding Principles are a cornerstone of our corporate management

philosophy. These principles were updated in 1997, to ensure they continue to provide
Toyota with a clear path towards achieving sustainable development.

These principles have been explored and developed in Toyota's Global Vision 2015,
adopted in April 2008, which proposes a series of long-term policies on the theme of
"Innovation into the Future." Toyota's Global Vision 2015 guides management in its
response to long-term social changes, combining consideration for the environment,
the benefit to our customers of value-added products and the encouragement of our
employees through shared prosperity and social involvement.

Based on the Guiding Principles, which codify Toyota's business spirit, the Toyota
Earth Charter (adopted in 1992 and revised in 1997) embodies a comprehensive
approach to global environmental issues. It outlines Toyota's basic policy and action
guidelines towards effective environmental management and improvements. The
Toyota Earth Charter underlines a commitment to environmental excellence, not only
through broad principles, but in concrete examples of what can be done through
action guidelines. In connection with the Toyota Guiding Principles and the Toyota
Earth Charter, a European Environmental Policy was developed as a means of linking
principles, goals, targets and action plans with management structures and systems.

TKM firmly believes that employees are the main source of strength for the
organisation. The human resources management in Toyota seeks to create a corporate
culture where values such as "Continuous Improvement" and "Respect for People" are
fully reflected in all actual corporate and individual activities. The company takes
maximum care to ensure stability of employment and strives to improve working
conditions.

To develop human resources and improve the technical skills of its employees, TKM's
young team members are regularly sent to Japan, Indonesia and Taiwan for training
programs. More than 425 team members have benefited from such programs at
various Toyota plants worldwide. TKM also believes in continuously improving its
products and practices. Every team member is encouraged to give suggestions to
improve the product, efficiency of processes or working conditions. They are also
appropriately rewarded for the same. Thus TKM seeks to progress by empowering its
employees.

Toyota Kirloskar motor (TKM) has the proud heritage of both these fine
establishments. The company, according to its mission statement aims to play a major
role in the development of the automotive industry and the creation of employment
opportunities, not only through its dealer network, but also through ancillary
industries with a business philosophy of ‘Putting Customer First’. At present the
Camry, Corolla, Innova and Prado are the successful cars of Toyota on Indian roads.
The Corolla and Innova are produced at TKM whereas Toyota Camry and Land
Cruiser Prado are imported as complete built units.

Also, TKM is opened a second new plant in 2oo8 marking the beginning of a second
era for TKM. It is poised to be not just a plant, but also a commitment to society and
the earth, aiming to create a new motorization future for India. Toyota’s new plant is
playing a significant role in promoting employment and technology transfer in India.

TOYOTA KIRLOSKAR MOTORS PVT LTD QUICK FACTS

Date Of Establishment 6-Oct-97

Chairman Mr. Fujio Cho

Vice Chairman Mr. Vikram S Kirloskar

Managing Director Mr. H. Nakagawa

Mr. Sandeep Singh

Deputy MD's
Mr. S. Tomonaga

DMD, Commercial Mr. Shekar Viswanathan

Paid-In Capital Rs. 7 billion

Shareholders Toyota Motor Corporation (89% equity)

Kirloskar Group (11% equity)

Employees 4986 members as per June 2010
Average Life of the Plant 29 Years
LOCATION AND CONTACT DETAILS
The Toyota Kirloskar Motors manufacturing plant is situated on the outskirts of
Bangalore City in the Bidadi Industrial Area of Ramanagar taluk, Karnataka. It is
spread over an expanse of 432 acres of land (approx 1.744848 sq. mts) of which
approximately 20 percent has been utilized presently for phase 1. The surrounding
environment consists of lush greenery and hillocks dotted with beautiful trees and
vegetation since it is situated on the green belt. The natural setting is synonymous
with Toyotas eco conscious approach to its business of manufacturing automobiles
and complements the well planned and built facility.

TKM ADDRESS AND CONTACT DETAILS

TOYOTA KIRLOSKAR MOTOR PVT.LTD (TKM)

PLOT NO.1, BIDADI INDUSTRIAL AREA, BIDADI

RAMANAGAR DISTRICT

PIN-562 109, KARNATAKA INDIA

TEL:+91-80-6629 2929

WWW.TOYOTABHARAT.COM

BANGALORE UB CITY OFFICE

(Sales and marketing div)

10TH FLOOR, CANBERRA BLOCK

UB CITY, NO.24 VITTAL MALYA ROAD

BANGALORE -560 001

KARNATAKA INDIA

ORGANISATIONAL PERFORMANCE:

PRODUCTION: 80,000 UNITS

SALES: 80,000 UNITS
EFFICIENCY: 94%

MARKET SHARE:

COMPANY MKT SHARE

MARUTHI SUZUKI 37.1
HYUNDAI 16.1
TATA 11.7
MAH & MAH 11.6
T0YOTA 6.4
GENERAL MOTORS 4.3
FORD 3.7
VOLKS WAGEN 2.9
HONDA 1.8
SKODA 1.4
NISSAN 0.9
FIAT 0.8
BMW 0.5
 MARUTHI SUZUKI
HYUNDAI
TATA
MAH & MAH
T0YOTA
GENERAL MOTORS
FORD
VOLKS WAGON
HONDA
SKODA
NISSAN
FIAT
BMW

VISION and MISSION

VISION

The vision of Toyota Kirloskar Motor is to:

1. Contribute to Indian industry and economy, technology transfer, HRD, Global

standard vehicles at a competitive price.
2. Contribute to the improvement, well being and stability of the team members.
3. Contribute to the overall growth of its business associates and its promoters.

MISSION

The Mission of Toyota Kirloskar Motor is to:

1. Design, manufacture and market automobile in India and in overseas market,

to maintain a high quality, to meet the expectations of the customers, always
delight the customer by exceeding the quality level by providing goods and
effective after sale service.
2. Perceive Kizen, maintaining flexible organisation, working schedule and
staffing plan which enables the company to respond to fluctuations of
production volumes and increase the productivity.
3. Providing a conducive and safe working environment where all team members
 can work with safety with a sense of security.
4. Provide the highest possible value addition to customers, team members,
investors and community at large.

THE TOYOTA BUSINESS PRINCIPLES-

 Creating a Prosperous Society Together by Making Things and Making

Automobiles -

Toyota hopes that the 21st century will be truly prosperous for society, and aims to
grow as a company together with its stakeholders, including customers, shareholders,
business partners, and employees, through making things and making automobiles,
while seeking harmony with people, society, the global environment and the world
economy.

In order to put these management principles into practice, the "Guiding Principles at
Toyota Motor Corporation" were established as the fundamental management policy
(see below). These principles were adopted in 1992 to codify the business spirit
handed down since the company's foundation, and revised in 1997 to add the
stipulation of legal compliance.

THE TOYODA PERCEPTS:

1. Be contributive to the development and the welfare of the country by working

together, regardless of position, in faithfully fulfilling your duties.

2. Be ahead of the times through endless creativity, inquisitiveness and pursuit of

improvement.

3. Be practical and avoid frivolity.

4. Be kind and generous; strive to create a warm, home like atmosphere.

5. Be reverent, and show gratitude for things great and small in thought and
deed.

 The Spirit of the Toyota Precepts Passed on since Toyota's Foundation -

The Toyoda Precepts, passed on from the time of Toyota's foundation up to the
present day, have acted as the core of Toyota management. The precepts capture the
thinking of the founder of the Toyota Group, Sakichi Toyoda, and have become the
basis of the Guiding Principles at Toyota Motor Corporation.

Initially this did not have a definite shape. However, with the growth of the scope of
the company, the need arose for the principles to be codified so that they could be
propagated among employees. Risaburo Toyoda and Kiichiro Toyoda, in the pioneer
days of the company, gathered together the teachings of Sakichi Toyoda and
published them in the form of the Toyoda Precepts on October 30, 1935, the fifth
anniversary of his death.

 Compliance -

Toyota defines compliance as "Comply with ethics, laws and internal rules/policies in
engaging in business" — in other words, not acts contrary to society's rules, nor
carries out actions that could be criticized by society. Toyota believes that to be a
good corporate citizen, it is essential that compliance permeates the entire company.

 Infiltrating the Management Principles -

The Guiding Principles at Toyota, which are based on the Toyoda Precepts, clearly
announce Toyota's management concepts. The first clause of them is "Honour the
language and spirit of the law of every nation and undertake open and fair corporate
activities to be a good corporate citizen of the world" — establishing compliance as
one of Toyota's management principles. Executive management takes every
opportunity, e.g. the New Year's greeting each year, to disseminate the management
principles. And throughout the year, Toyota works to continually advance its
management principles through a variety of education and training programs and on-
the-job training

SOCIAL CONTRIBUTION
Toyota Kirloskar has always striven to go beyond the business of just making great
cars .In fact Toyota has been known the world over for having taken issues pertaining
to care for people, the environment and the society very seriously and this culture is
deeply rooted in the culture of Toyota. Given below are a few significant social
contribution activities undertaken by Toyota Kirloskar Motor:

Local Area Development –

TKM uses every opportunity it gets to partner with other companies, schools, colleges
and businesses to support community development programmes in and around its
production facility. These encompass a wide array of activities that primarily include
providing food, clothing and shelter to the underprivileged masses. Toyota has also
extended its helping hand to the state police department by rebuilding the Kengeri
police station .The renovated structure now is bigger in area and is better equipped
functionally and aesthetically ,sporting new furniture and facilities.

Educational Support –
Toyota understands the important role that education plays in shaping society. Hence,
it has taken many steps to promote education among the backward sections of society
and spread literacy. In this regard Tkm has reconstructed a residential school at Bidadi
that houses close to a hundred underprivileged students, moreover it has also
partnered with local schools in and around its plant at Bidadi especially in
Ramanagara district in contributing books, bags, stationary and even computers for
school children.

Since 2003 TKM came with Toyota Technical Training Institute (TTTI) of providing
technical education to 64 poor students every year in their premises after their SSLC
education and provide the job opportunities to them after their education and training.

Safety Initiatives –
Toyota has successfully pioneered an interactive learning programme on traffic safety
for young school children called the Toyota Safety Education Programme or TSEP.
The primary purpose of the initiative was to educate and spread awareness on basic
road safety and awareness among young school children throughout the numerous
schools in Bangalore.
Disaster Relief –
Toyota Kirloskar Motors has contributed generously in the past to the victims of
natural calamities .It had contributed financial aid to the tune of twenty five lakhs to
the Prime ministers relief fund towards the victims of the Tsunami disaster and it also
played a pivotal role in the distribution of food, water and clothing in the earthquake
hit areas of Gujarat and recently they supported financial support when Tsunami hit
Japan in 2011.

Environmental Protection and Conservation –

Toyota has taken numerous steps to spread eco-consciousness that include tree
planting drives and organizing functions and seminars to educate people on proper
waste disposal, rain water harvesting and using alternate clean sources of energy. In
fact during my study visits to the Toyota plant preparations were being made towards
conducting an ‘Aforestration drive’. Toyota has also begun an ‘Eco spirit campaign’
which works at promoting environmental awareness among school children again
through fun yet innovative learning methods such as painting and quiz competitions .

Promoting the Japanese Language –

Tkm has agreed to grant financial aid to the Bangalore University in assisting in the
development of the Japanese language for the period between 2004 and 2007 by
conducting courses and programmes and sponsorship of a tutor and necessary study
resources to further its cause. In fact Tkm has signed an MOU with Bangalore
University in this regard.

Social and Industrial Growth –

Toyota aims to develop and strengthen the Indian automobile industry through its
product offerings and creation of large employment opportunities which will be
instrumental in its overall mission of promoting sustained and shared growth and
thereby improving the quality of life and affect a robust economic activity in India.

AWARDS AND RECOGNITION

Toyota as a pioneer in automobile design and manufacture has been recipient to
numerous coveted awards and recognitions .This fact is evident when one enters the
TKM plant reception premises

Given below is the list of awards and recognition that Toyota has received in the past

1. Business Standard Motoring : Import Car Of The Year Award - Camry 2007  

2. BBC-Top Gear: Car Design Of The Year - Camry 2007

3. CNBC-TV18 Auto car: Best Design and Styling- Camry 2007

4. BBC-Top Gear : Best Design Of The Year - Camry 2006

5. Business Standard Motoring: MPV Of The Year - Innova 2006

6. NDTV - Car Awards: Best MPV Of The Year – Toyota Innova 2006

7. Overdrive: UV Of The Year For Innova 2006

8. Auto Monitor -CSR Initiative Of The Year 2006

9. CNBC Auto car Awards: Technologically Advanced Car - Land Cruiser Prado 2005

10. Business Standard Motoring : Best Executive Car 2004 & 2005 (Corolla) Best MUV
2005 (Innova)

11. TNS Award – Total Customer Satisfaction Study: Best Executive Car 2004 & 2005
(Corolla) Best MUV 2005 (Innova)

12. Business Standard Motoring: Best Executive Car 2004 & 2005 (Corolla) Best MUV
2005 (Innova)

13. TNS Award – Total Customer Satisfaction Study : Qualis, Corolla & Camry 2004

14. Business Standard Motoring: Best Import Car Of The Year – Land Cruiser Prado
2004

15. JD Power Asia Pacific: IQS Study – Corolla 2004

16. JD Power APEAL: Corolla 2004

17. JD Power Initial Quality Survey: Qualis 2003

18. Business Standard Motoring : Best Import Car Of The Year – Camry 2003
19. NFO Automotive: Highest Resale Value Car – Qualis 2003

20. JD Power APEAL Survey: Corolla 2003

21. JD Power India Initial Quality Award: Qualis 2002

22. JD Power India Initial Quality Award: Qualis 2001

23. Overdrive Best Utility Vehicle: Qualis 2001

24. NFO Automotive: Best MUV – Qualis 2001

25. JD Power Initial Quality Survey: Qualis 2000

26. JD Power India Appeal Study: Qualis - 2000 & 2002

27. Business Standard Motoring: Best MUV Introduction – Qualis – 2000

28. Overdrive Best New Introduction New Model: Qualis – 2000

29. NFO Automotive: Total Customer Satisfaction Study – Qualis 2000