Japan-based automotive parts manufacturer Toyoda Gosei (TG) will reorganise its production subsidiaries in India for “TG One India” – the company is looking to optimise its production network in the country and also intends to develop a more flexible supply system“not bound by product categories.” Hence, Toyoda Gosei will transfer its all shares in Toyoda Gosei South India Pvt. Ltd. (TGSIN) to Toyoda Gosei Minda India Pvt. Ltd. (TGMIN) in 2020.
TGSIN supplies interiors and exteriors and other parts mainly to Toyota Motor, mostly in South India, while TGMIN supplies airbags, steering wheels, and other parts mainly to Suzuki Motor in North India. TGMIN, a Rajasthan-based joint venture business between TG and fellow automotive supplier Uno Minda Group, will reportedly own 95% of TGSIN shares after the transaction; the remaining 5% will be owned byToyota Tsusho Corp.
India remains a market of focus for TG’s medium- and long-term 2025 business plan. After setting up TGMIN’s Gujarat Plant and Gurgaon Sales and Engineering Office in 2018, TG said it will continue to enhance its development and production capacity in the Indian market.