Chennai rains hit Toyota parts supply

Parts at warehouses are sufficient enough to meet requirements of Toyota until Dec 10

By: | Updated: March 20, 2016 8:51 PM

The worst-ever rain that lashed Tamil Nadu over the last few days is likely to cause loss of production for Toyota Kirloskar Motor (TKML), which outsources some key components from suppliers in Chennai. The company is even looking at importing parts from its overseas plants in Japan, Indonesia and Thailand to meet the production targets if its vendors fail to resume production in the next couple of days.

The Japanese car maker has its car manufacturing plant at Bidadi near Bengaluru, but outsources various parts from suppliers in Chennai and Bengaluru among other cities.

“We are comfortable with the stock of parts for the next two to three days. Our supplier partners in Chennai are yet to restore production. If the situation does not improve and workers fail to return to work in Chennai in the next two days, then our production will be affected in Bidadi,” Shekar Viswanathan, vice chairman and whole-time director, TKML told the FE.

He said the company is keenly watching the situation in Chennai and has offered all help to its supplier partners to resume normalcy. The company has told its suppliers to take care of their workers and their safety before restarting production. “Lot of people have lost their homes. It is important to take care of their health before we worry about the production,” he said.

Toyota outsources some key components like rear lighting systems, steering systems and brake components for a variety of its products like Etios, Innova and Fortuner among others from various vendors in Chennai.

Parts manufactured and stored at warehouses are sufficient enough to meet the requirements of Toyota until December 10. Subsequently, the company plans to import these components.

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