KIYOSU, Japan—Toyoda Gosei Co. Ltd is reorganizing its operations in India in a bid to optimize its production network in the country.
As part of the move, the automotive parts manufacturer said April 2 it is transferring all of its 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 in South India. TGMIN supplies airbags, steering wheels, and other parts mainly to Suzuki Motor in North India.
Set up in 2008, TGMIN is a Neemrana, Rajasthan-based joint venture business between Toyoda Gosei (50.1 percent) and Uno Minda Group (49.9 percent).
After the transaction, TGMIN will own 95 percent of the TGSIN shares, while Toyota Tsusho Corp. will own the remaining 5 percent.
With this restructuring, Toyoda Gosei said it intended to develop a "more flexible supply system in India that is not bound by product categories."
India is one of the top markets targeted by Toyoda Gosei's medium- and long-term 2025 business plan.
Having opened a sales and engineering office in Gurgaon, near Delhi, in 2018, Toyoda Gosei said it intended to increase its development and production capacity in the emerging market.