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About the Report
This report details Toyota Kirloskar Motor [TKM] Pvt. Ltd. India's, sustainability performance
from April 1 2009 to March 31 2010.
Toyota Kirloskar Motor (TKM) policies, strategies and the field and the results that follow.
published its first annual performances affecting its
Environment Report in 2003 as a business and stakeholders during Our key target audience is our
disclosure of information on the the financial year April 2009 to internal and external stakeholders.
company's environmental March 2010. They include employees, dealers,
activities. In 2007, the report customers, suppliers,
widened its scope to include the The material included in this government, educational
company's activities in corporate report is based on stakeholder institutions, the media, Toyota
social responsibilities. feedback and extensive internal Motor Corporation and other
dialogue conducted through companies that have an interest in
Through this first Sustainability processes that form an integral sustainability and reporting.
Report and the sixth annual part of the company's daily
report, TKM intends to provide operations. TKM believes that this We welcome your feedback on
transparency of its economic, report covers a balanced and this report. Please send us an
environmental and social complete set of topics that email to: eco@tkm.co.in
commitments as well as the illustrates our committed efforts in
We welcome your feedback on this report. Please send us an email to: eco@toyota-kirloskar.co.in
An online copy is available at:

http://toyotabharat.com/inen/environment/index.asp
SUSTAINABILITY REPORT 2010
Contents
About the report 02
Message from MD 06
Corporate Philosophy 08
Stakeholder Engagement 22
TKM and Sustainability 23
Environment Performance 24
Social Performance 34
Customer 35
Employees 40
Society 45
Business Partners 49
Economic Performance 58
Special Stories 60
Auto Expo 2010 (New Delhi) 60
Prius Launch in India 61
Greenathon II 61
TOYOTA KIRLOSKAR MOTOR 05

Message from MD
I take this opportunity to express my hearty thanks to all our stakeholders for your continuous support to Toyota
Kirloskar Motors.
At TKM, we strive to be the most loved and admired automobile company in India by following the Toyota-way
philosophy. Team Toyota India is committed to contributing to economic and social development for a
sustainable future. We strive to contribute to the Indian economy by:
• Manufacturing value added products, with global standards of safety and quality
• Bringing innovative technology to the Indian market
• Generating employment
• Raising the skill levels by imparting training through initiatives like Toyota Technical Education Programme
(TTEP) and Toyota Technical Training Institute (TTTI) .
• Creating road safety awareness through the Toyota Safety Education Programme (TSEP)
In line with Toyota's global vision towards sustainability, our aim is to make the process and products eco-
friendly. The Etios plant is an eco-plant in harmony with nature where we have incorporated environment
friendly technologies like water-borne paint, energy efficient equipment and water recycling.
The Delhi Auto Expo 2010 marked an important milestone in TKM's history through the launch of our Etios
Concept and launch of hybrid car Prius in India which is the world's best selling hybrid car.
Towards our journey in achieving sustainability, we have planted 64,000 saplings. We will continue this journey
towards creating a potential natural forest.
I thank my colleagues, the suppliers, dealers and all stakeholders for their continuous wisdom in meeting
every challenge with speed, flexibility and cooperation towards sustainability.
I am delighted to present TKM's 2010 Sustainability Report to you and welcome your feedback.
Let's Grow Together,
Hiroshi Nakagawa,
Managing Director
Toyota Kirloskar Motor
04
06 TOYOTA KIRLOSKAR MOTOR
Key Figures
Environmental Performance
23 % Reduction in power usage
20 % Reduction in Water Consumption
85 % Coverage of Dealerships Compliant with ISO 14001
98 % Coverage of Suppliers (core) Compliant with ISO 14001
Social performance 2008 2009 2010

Number of Employees 3762 3511 5637
Turnover rate for employees 6.3% 3.7% 2.8%
Community Investments
(through Community Spirit
and Community
Sponsorships) in Mil. Rs. 85.5 106.5 108
Economic performance 2008 2009 2010

Units Manufactured 53,774 46,251 63,269
Units Imported as CBU 1,295 492 504
(Completely Built Unit)
Net Profit after Tax [Rs. in Mil]

(08/09 and 09/10 fiscal years) 2,073 1,226 3,093

Corporate
Philosophy
Seeking Harmony between People, Society and
the Global Environment, and Sustainable
Development of Society through
Manufacturing…
Corporate Philosophy
Since its inception, Toyota has by applying its guiding
worked continuously towards principles of conducting open
contributing to the sustainable and fair corporate activities
development of society and also contributes to
through the manufacturing economic and social
and provision of innovative development through its local
and quality products and business activities.
services that lead the times.
Through its overseas
Toyota Kirloskar Motor's subsidiaries, Toyota is
performance in India and our dedicated to social
corporate culture are driven contribution by addressing a
by Toyota's guiding principles variety of cultural and social
and the Toyota way. In India, issues and engaging in
we reflect these global values proactive local
through our sustainable plant communication. Toyota will
activities and our customer remain a locally based
first approach. corporation and will continue
to play its part in promoting
In every nation and region, the growth of each nation and
Toyota aspires to be a good region with its automobile
corporate citizen of the world production.
The Guiding Principles
Guiding
Principles
and 2020 Vision
A framework
for settling long-term
business goals and policies
Toyota Earth Charter

applies principles and vision to
environmental aspects of business
Environmental Environmental
Action Plan Management Systems
translates long-term vision for monitoring performance,
and policy into medium to implementing action plans
long-term objectives and ensuring targets are met
The guiding principles at methods that it has embraced

Toyota (adopted in 1992 and since its foundation. The
revised in 1997) reflect the guiding principles (detailed in
kind of company that Toyota the section on 'Stakeholders')
seeks to be in light of the define the values the
unique management company delivers to its
philosophy, values, and stakeholders.

Toyota Global Vision 2020
As we look ahead to 2020, society and nature is

Toyota believes that re- extremely important. Toyota
examining the relationship is helping promote efforts
between nature and the toward finding a balance
industry and pursuing between the cycles of
synergy between nature and the cycles of
manufacturing, people, industry.
Toyota Global Vision

Economic development is global scale, the environment useful member of both the global
accelerating in a number of surrounding the automotive and local community and has
regions throughout the world. With industry is undergoing drastic formulated its Global Vision 2020,
environmental and energy related changes. Amid these changes which provides a future vision for
issues having an impact on a Toyota endeavors to remain a Toyota's place in the world.
Where Toyota would like to be in 2020 TOYOTA GLOBAL VISION 2020
"Cycles of Nature" "Cycles of Industry"

An industry
All people and creates new
communities are subject to value, while
the natural cycles of the spawning the birth
earth. Toyota is committed to of a new industry -
undertaking monozukuri such is the way of the Open the frontiers of tomorrow
(manufacturing) that strikes a cycles of industry.
harmonious balance with Toyota endeavours to be through the energy of people
nature in order to carefully a driving force behind
sustain the global the development of and technology
environment. sustainable industries.
Currently, Toyota is employing
"Open the Frontiers of Tomorrow'
as the slogan for Global Vision
2020. This slogan expresses the
As it looks ahead to 2020, important. Also, by seeking commitment of Toyota and each
Toyota believes in re- harmony between and every employee to never be
examining the relationship monozukuri and the cycles satisfied with the status quo. To
between nature and of nature, Toyota is helping create a path to a new world and
industry and pursuing promote efforts toward to work steadily towards the
harmony between finding a harmonious realization of society's dreams.
monozukuri, people, balance between This progress is to be achieved
society in general, and challenges in new fields in through the energy of people and
nature is extremely order to achieve this. technology.

The Toyota Earth Charter (formulated in 1992, revised in 2000) is based on the Guiding Principles at Toyota
formulated in 1992 (revised in 1997), and embodies Global Toyota's comprehensive approach to
environmental issues. The Toyota Earth Charter has been adopted by about 530 affiliates worldwide to date.
Toyota Earth Charter

Basic Policy
1. Contributing towards a possible environmental global, national and regional
prosperous 21st century technologies developing and scales and promotes
society: Contributing to a establishing new technologies continuous implementation.
prosperous 21st century to enable the environment and 4.Working in cooperation with
society. Aim for growth that is economy to economy to society: Build close and
in harmony with the coexist harmoniously. cooperative relationships with
environment and set as a 3. Voluntary actions:Develop a a wide spectrum of individuals
challenge the achievement of voluntary improvement plan and organizations involved in
zero emissions throughout all based on thorough preventive environmental preservation
areas of business activities. measures and compliance including governments, local
2. Pursuit of environmental with laws that address municipalities, related
technologies: Pursue all environmental issues on the companies and industries
II. Action Guidelines

Always be concerned about the contribute towards • Contribute also to non-profit
environment. Take on the environmental improvement activities
challenge of achieving zero Business partners are partners Toward better understanding
emissions at all stages, i.e., in creating a better Actively disclose information
production utilization and environment Cooperate with and promote environmental
disposal. associated companies awareness
• Develop and provide As a member of society
products with top-level Actively participate in social
environmental performance. actions
• Pursue production activities: • Participate in the creation of
that do not generate waste a recycling-based society
• Implement thorough • Support government
preventive measures environmental policies
• Promote businesses that
Toyota Environmental Action Plan

Toyota Environmental Action Plan System
In accordance with the
Toyota Earth Charter, Toyota Guiding Principles at Toyota
Universal
Motor Corporation (TMC) guiding Formulated in 1992, revised in 1997
has formulated the Fourth principles
and policies
Toyota Environmental Formulated in 1992, revised in 2000
Action Plan, a five-year plan
with medium-term goals Mid/long- Various environmental measures Toyota Global Vision 2020
term and guidelines
covering the period from movement
2006 to 2010 to facilitate and direction
Toyota Environmental Action Plan (Five-year plan)
the promotion of
2006-2010 Fourth Plan Environment committees
environmental initiatives by Daily operation 2011-2015 Fifth Plan (products, production, resource
each company.
Annual policies, plans

Company Overview:
TKM at a glance
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 through its dealer network and ancillary
industries.
Company Overview: TKM at a glance
Who We Are
What We Do
Toyota Kirloskar Motor [TKM]
is a partly owned subsidiary TKM is an emerging
of Toyota Motor Corporation, passenger car manufacturer
Japan (TMC). TMC is in India. We manufacture and
Japan's largest vehicle sell new vehicles, parts and
manufacturer and is now the deliver customer service all
largest automotive company over India through our
in the world. independently owned dealer
network.
TKM employs about 4109
people and around 1528 Toyota Kirloskar Motor
more are indirectly employed Where We Are manufactures the Innova,
at our manufacturing facility. Our corporate headquarters Corolla Altis and Fortuner
is based at our model vehicles. The Fortuner
manufacturing plant in has been the best selling
Bidadi, 25 km south of model in the SUV segment in
Bangalore which is popularly India in 2009-2010. Also the
known as the Silicon Valley Innova has been the best
of India. We have a selling model in the MPV
marketing office in segment for the past five
Bangalore city and our years in succession. We also
regional offices and training import and sell the Camry,
centers are in Gurgaon, near Land Cruiser, Prado and Prius
New Delhi. models as CBUs [Completely
Built Units] throughout our
dealer network in India.
TKM also markets used
vehicles under the 'Toyota U
Trust' outlets. This is a
dedicated used vehicle
outlets refurbished by Toyota
and backed by a
comprehensive warranty that
provides customers with a
similar level of manufacturer's
commitment as new car
buyers.

Product Line-up
Innova
Corolla Altis
Fortuner
Corolla Altis ,Innova & Fortuner model automobiles (manufactured in India)
Key Milestones of Toyota in India

Initiated as a successful joint venture between the Japanese Toyota Motor Corporation and the Indian
Kirloskar Group, TKM has emerged as a key player in the automobile industry over the past decade.
1997 1999 December 2003 January

Construction of TKM Qualis Production Started Corolla Production Started
1997 1999 2001 2003
1997 August 2001 April

1997 Establishment of TKM IS0 14001 Certification

Prado
Camry
Prius Land Cruiser
The Camry, Prado, Land Cruiser 200 and Prius (imported into India as Completely Built Units)
Manufacturing /trading of service parts for the above models.
Toyota Kirloskar Motor took off in India with a beginning in the MPV segment and within a decade has
diversified into the mid-range luxury and SUV segment. As a first of its kind venture by Toyota, TKM will be
staging the manufacture of Toyota's small car in India for the first time.
2003 September 2007 August 2009 July

Reached 1 Lakh Product. Units TTTI Inauguration Plant 2 foundation laying
2003 2005 2007 2009 2009 2009
2005 February 2009 June 2009 August

Innova Production Started Afforestation Day – 21st June Fortuner Launch

A bird's eye view of the Toyota Kirloskar Motor, Bidadi manufacturing

facility
TKM is situated in the Bidadi Industrial Area, which has been earmarked by the Government as an industrial
area development project. No natural biodiversity habitats are affected by the location of the manufacturing
facility.
4
3

Legend: 4, Afforestation Zone
1, Toyota Technical Training Institute [TTTI] 5, Plant 1
2, National Parts Centre [NPC] 6, Plant 2
3, Test Track 7, On-Site Supplier's Park [OSS]

Award & Accolades

CII-ITC SUSTAINABILITY AWARD 2009
among large business organizations in the
category 'Commendation for Significant
Achievement'.
This award is to recognize and appreciate
commendable achievement in the
Environment, Social and Economic
dimensions towards achieving
sustainability.
Mr. Mahesh Salkar, GM, TKM receiving the

award from Mr. Jairam Ramesh, Hon. Minister
of State (Independent Charge) of the Ministry
of Environment and Forests, Govt. of India
"BEST EMPLOYER BRAND AWARD - AUTOMOBILE" AWARD FOR MOST INNOVATIVE ENERGY
for the year 2009-10 EFFICIENCY & CONSERVATION ACTIVITY" by
Bangalore Chamber of Industry & Commerce (BCIC).
TKM received the Best Employer Brand Award The Hon. Chief Minister of Karnataka presenting the
instituted by the Employer Branding Institute, Mumbai. BCIC award
TOP MERCHANT EXPORTER -Export Excellence J D POWER AWARDS FOR PRODUCT PERFORMANCE
Award For FY 2009-10 [FKCCI]
TKM awarded with the TOP MERCHANT EXPORTER - Award by JD Power for best car in the MUV/MPV segment
GOLD for Export Excellence Award to the Innova for the FIFTH CONSECUTIVE YEAR

Corporate Governance
Philosophy: Governance Structure
TKM recognizes that good Board of Directors
governance is a sine qua non for
At the core of corporate professionals in their functional
sustainability. The mission and
governance practice is our Board areas and provide directions to the
vision statements, code of ethics
of Directors, which is the highest management on operational
and internal control mechanisms
governing body. The Board issues, adoption of systems and
built in under Sarbanes Oxley Act
provides strategic guidance and best practices in management.
compliance defines our value
reviews the corporate policies, They also oversee the compliance
system and reflects our culture
regulatory compliance, significant of various legal and other
and commitment to the values of
management areas and overall requirements.
corporate governance.
performance of the organization.
TKM has taken adequate steps to
Toyota Kirloskar Motor promotes
The TKM Board comprises of form various committees at the
a culture of high ethical
seven fulltime Executive Directors Board level to focus attention on
standards, integrity, transparency
and five Non-Executive Directors. crucial issues before placing the
and accountability in our all
Our company's Executive Directors same before the Board for
business transactions and in
are highly experienced consideration.
compliance with all laws and
regulations. The company has
established internal control 7 Executive Directors 5 Non-executive Directors
mechanisms to ensure the
observance of the norms of BOARD OF DIRECTORS
corporate governance and
believes in a system driven
performance with the highest Board Level Committees
priority given to these systems. Audit Remuneration Share transfer
Committee Committee Committee
TKM's Hierarchy:
Toyota Kirloskar Motor has a strong organization Corporate Affairs, Marketing and Manufacturing.
that takes up environmental initiatives and The details have been mentioned in the chart
promotes them effectively. The organization is below.
mainly divided under three heads, namely
Indian Managing
Project Office Director
Deputy Managing Deputy Managing Deputy Managing

Director Director Director
Corporate Affairs Marketing Manufacturing
Business Planning and Customer Relations Quality Assurance

Legal
Marketing Product Design and
External Affairs and CSR Development
Sales
Administration Plant Administration
and IMPEX
Information System Dealer Development
Production Engineering
Customer Service and Services
Human Resource Mgmt
Conversion and Production

Finance and Accounting
Accessories
Quality Control
Purchase

TKM Vision and Mission

To enhance the quality of nurtures a commitment to the citizen, TKM faithfully abides
daily operations, inculcate a environment and to also build by the following vision and
unique corporate culture that long standing relationships mission statements:
values innovative ideas, with the stakeholders to
continuous improvements and remain a trusted corporate
Vision • Touch the hearts of our customers by providing

products and services of superior quality at a
• Delight our customers through innovative
competitive price
products, by utilizing advanced technologies
and services • Cultivate a lean and flexible business model
throughout the value chain by continuous
• Ensure growth to become a major player in the
improvement
Indian auto industry and contribute to the Indian
economy by involving all stakeholders • Lead Toyota's global operations in the emerging
mass market
• Become the most admired and respected
company in India by following the Toyota way • Create a challenging workplace which promotes
a sense of pride, ownership, mutual trust and
• Be a core company in global Toyota operations
teamwork
Mission • Create an eco-friendly company in harmony with

nature and society
• Practice ethics and transparency in all our
business operations Through these activities establish a superior brand
image in India.

the whistle blower will be kept a emphasizes that all team

Code of Ethics secret and protected. The members should ensure that a
TKM has developed a code of Whistle Blower Policy Committee conflict of interest, if any, arising
ethics based on the guiding is headed by members of the out of factors like having a
principles of Toyota. These top management and a business interest in another
business ethics and values are comprehensive system is put in organization, hiring the services
aimed at building a good place to investigate the of friends and relatives, doing
organization and work culture complaints. business with friends and
while also being a good relatives, insider training, etc.,
corporate citizen while achieving SOX Compliance will not affect the interests of the
the company's vision and company in anyway. An
mission. The code of ethics is TKM, which is a subsidiary of employee should inform the
applicable to all team members Toyota Motor Corporation (TMC), Management and provide full
and employees of TKM. is listed in the stock exchanges disclosure if he is involved in
of USA, and complies with the any such activity.
requirements of the Sarbanes
Whistle Blower Policy Oxley Act (SOX) of USA. TKM Ensuring Legal
TKM has formulated the Whistle has rigid control systems and
Blower Policy which provides a processes in place to ensure Compliance
framework for all employees to accuracy and reliability of its
TKM has established a
come forward with their corporate financial statements.
comprehensive legal
complaints regarding fraud, The company is focusing on
compliance system, where each
bribery, unfair business continuous improvements in the
division head is responsible for
practices and a breach of law or compliance and reporting
the compliance of all laws and
local customs, social rules and structures.
regulations for the functions
traditions. The Whistle Blower
under them. The reports of the
Policy has been circulated to our Managing Conflict of Occupier and the Company
dealers and suppliers and is
applicable to all team members Interest Secretary are reviewed by the
Board.
of the company. The identity of TKM's code of ethics
Mr. H Nakagawa Mr. Vikram Kirloskar

Managing Director, TKM Vice-Chairman, TKM
Mr. DK Jain
Mr. Ashok Sachdev
President, Toyota Kirloskar Supplier's
President, Toyota Dealer Council
Association

Toyota Guiding Principles

Toyota's guiding principles, which were adopted in 1992, define the mission of Toyota and the value
the company delivers to stakeholders. How the guiding principles relate to each stakeholder group is
listed in the diagram at the bottom of the page.
1. Honor the language and providing clean and safe while honoring mutual trust
spirit of the law of every products and to enhancing and respect between labor
nation and undertake open the quality of life everywhere and management.
and fair corporate activities through all our activities. 6. Pursue growth in harmony
to be a good citizen of the 4. Create and develop with the global community
world. advanced technologies and through innovative
2. Respect the culture and provide outstanding management.
customs of every nation and products and services that 7. Work with business partners
contribute to economic and fulfill the needs of in research and creation to
social development through customers worldwide. achieve stable, long-term
corporate activities in the 5. Foster a corporate culture growth and mutual benefits
community. that enhances individual while keeping ourselves
3. Dedicate ourselves to creativity and teamwork, open to new partnerships.
Stakeholder Engagement
TKM's stakeholders are all those groups which are perceived to be affected by, or who are capable of
affecting the company's operations. The table below lists engagement activities undertaken in 2009-10.
CUSTOMERS
Guiding Principles 1,3,4
Minimising environmental impact through eco
-friendly engines and vehicles (see page 37)
Introduction of eco-friendly Prius in India (see
page 61)
HO
Business Partners AKE LDER
[Suppliers and Dealers] ST
Guiding Principles 1&7
Customer satisfaction EMPLOYEES
enhancement activities (see page Guiding Principles 1&5
51)
Team member family involvement activities (see
Supplier development programs page 63)
and TPS promotion (see page 55)
Joint declaration between Management and Union
(see page 42)
EN
G AG E M E N T GOVERNMENT
Guiding Principles 1,2,4
Regular liaison on
compliance issues including
environment, safety and
society.
COMMUNITY
TOYOTA MOTOR CORPORATION
Guiding Principles 1 to 4
Guiding Principles 1&6
Community awareness and
Regular liaison on operating issues
Philanthropic Activities (see page 45)
including product, quality, sales and
marketing Traffic Safety Education Programme
(see page 47)

Toyota Kirloskar Motor

and Sustainability
At TKM, we strive to be the most loved &
admired automobile company and have
always endeavored to achieve this by
doing business in a sustainable manner
which is in harmony with nature.
Sustainability is inherent in Toyota
culture and our vision, philosophy and
guidelines are true reflections of our
commitment for a sustainable future.
This is evident in one of the core
principles of Toyota- 'repay the earth
and society through technological
innovation (and contribute to enhancing
the quality of life everywhere.)'
Throughout its journey, Toyota has

believed in the guiding principle of
'contributing to the development of a
prosperous society through the
manufacture of automobiles.' It provides
Toyota with a clear path towards
achieving sustainable development and
has enabled Toyota to harmonize
between two areas of sustainability -
nature and manufacturing.
Community Afforestation Green Purchasing

Afforestation At TKM Guidelines
Program
Elimination of
Community Substances of
Development Concern
Activities
Cycles of Cycles of Energy
Clean & Green

Nature Industry Conservation
Activity in
Community
Eco mind
Promotion
Environment. Awareness DERAP

Greenathon II
TSEP
Training to
Activities at TKM in alignment with Global Vision 2020

Environment
Performance
Toyota Kirloskar Motors has focused on achieving
harmony between its manufacturing activities and
the natural world based on the concept of 'a plant
that optimally utilizes natural resources, while
operating in harmony with the natural environment.'
Environment Performance
Toyota Kirloskar Motors Toyota EMS Concept:

has focused on
achieving harmony
between its # 1 in the Asia
Pacific Region
manufacturing activities
and the natural world,
Improve
based on the concept of Environmental
Performance Toyota Way and
ISO 14001
'a plant that optimally
utilizes natural resources, Toyota
Law EMS Prior
Adherence Prevention
while operating in
harmony with the natural Compliance and Minimization of
No complaints Environment Risk
environment.'
In concurrence with
The Toyota EMS (Environmental forms the backbone of our
Toyota's Environment Management System) holds the commitment towards reducing
key to environment our ecological footprint and we
Action guidelines, TKM management efforts across have been re-certified for ISO
Toyota affiliates and at TKM 14001:2004.
has come up with its own alike. Globally, Toyota has
encouraged all affiliate plants to In a pioneering effort, TKM has
be ISO 14001 certified and been strongly promoting ISO
set of initiatives towards 14001 certification among its
TKM obtained the ISO
14001:1996 certification within suppliers and dealers. The core
promoting sustainability a year of commencing idea is to promote environment
operations in India. Toyota EMS friendly operations among all
at the manufacturing site is applied to drive a continuous our stakeholders. In a
performance improvement significant achievement, TKM
in India. This section cycle in line with site specific has been successful in
objectives and corporate promoting ISO 14001 to 98
elucidates the activities policies and strategies. The key percent of its suppliers and
elements of the EMS system more than 85 percent of its
taken up at the are 'compliance/no complaints' dealers.
and 'environment risk The highest degree of
manufacturing site at mitigation'. abidance to EMS (ISO
In order to achieve the 14001:2004) by TKM has been
Bidadi, Bangalore in recognized by the External
objectives of environment
policy, the Environmental Auditing Agency, which has
detail. awarded TKM with Zero NC for
Management System (EMS)
has been used effectively. EMS four successive years.

ENVIRONMENT PERFORMANCE
TKM Environment Committee
The Toyota Motor Corporation work towards energy conservation year of production in 2001, to take
(TMC) has established a regional and environmental risk care of environmental and CSR
headquarters TMAP (Toyota minimization. Toyota Kirloskar activities as a specialized
Motors Asia-Pacific) at Thailand. Motor also established an organization.
This organization is intended to Environment Committee in its first
Companywide Leader
Managing Director
Top Management
Companywide Promoters
Deputy Managing Director
Organizational Structure:
Sub- Manufacturing Purchase Logistics Customer Communication

Committee Sub-committee Sub-committee Sub-committee Service Sub-committee
Ensuring Zero Supplier ISO14001 CO2 Emission DERAP Promotion Promote TKM
Scope
Non- Certification. Reduction ISO 14001 Envt. and CSR
of Work Green Purchasing Packing Material
Conformance Certification Commitment
Guidelines Efficiency
Co-Ordination By the Safety and Environment Department

objective to minimize the impact formulated based on the TKM

Performance Data of its activities on the Five Year action plan which in
Environmental Action Plan environment, thus contributing to turn is derived from Toyota's
maintaining a balance of the Global Environment action plan.
Toyota has been keen on economic, social and During the course of
responding to the needs of the environment aspects of implementation of annual action
environment as it does to its sustainability. The Five Year plans, there is nearly a 4 percent
customer's requirements. It Environment action plan sets the reduction target so as to
does so through its principles, guidelines for TKM's continuously improve the
policies and the Toyota Environment Management and general performance of the
Environmental Action Plan for for the promotion activities of its previous year.
Environment Management. operations. The annual
Environmental action plan is The following is a summarization
It has been TKM's long term of TKM's performance this year.
TKM five year Environmental Action Plan (2009 - 2010)

Performance Data
Action Item Specific action items and goals

Target Actual
Production: 4% Redn. 4% Redn.
Reduction in electricity consumption.

(Purchased+generated)(kwh/veh) 20% based on Current 461 kwh/veh 416 kwh/veh
year status
Reduce CO2 Reduction in LPG consumption. (kgs/veh) 20% based on 29.2 kgs/veh 28.97 kgs/veh
emissions in Current year status
production and
logistics activities Reduction in energy.(Total of Electricity + LPG in GJ/veh) 3.12 GJ/veh 2.93 GJ/veh
of each country 20% based on Current year status
and region.
Logistics :
Reduction in emission of CO2/unit 15% reduction based on 4% 4%
2006 values
Production :
Increase Yield ratio 68.5% 70%
Promote the Hazard Waste reduction : 4% 26%

effective use of
resources to Reduction in generation of Hazardous waste (kgs/veh). 20%
based on Current year status (Chemical sludge+Phosphate 7.95 kgs/veh 5.87 kgs/veh
further contribute
to the realization of sludge+Paint sludge)
a recycling based
society Non-Hazardous Waste Reduction: 2% 2%
Reduction in generation of Non Hazardous waste

14.42 kg/veh 16.69 kg/veh
(Miscellaneous solid waste) by 20% based on Current year
Logistics :
Reduction of packaging and wrapping materials 4% 4%
Reduction of water consumption by 10% based on current 2% 2%

Reduce water year status (m3/veh)
consumption 4.56 m3/veh 4.4 m3/veh
Initiative to reduce VOC reduction 48.8 gm/m2 43.92 gm/m2

VOC emissions

Environmental policy commits us to control Note: The key performance

pollution and reduce energy at indicators are measured and
Performance: KPI
every possible opportunity. We controlled by units which are
Management strive continuously to minimize our usually based on the per car
water consumption, the generation measurement over the entire year.
Towards fulfilling our basic
of hazardous waste and air
obligation to the environment, The market conditions for Toyota
pollution and we continue to
TKM aims to use resources wisely vehicles in the Indian automobile
reduce CO2 emissions and
and reduce waste from its market were most unfavorable in
improve our energy efficiency. Our
business activities. For many 2008 and grew positively in 2009,
periodic internal audits and
years we have been reporting our consistent with the global market
external audits have strengthened
energy and water usage and recovery. This has directly
our environmental management
waste and recycling volumes from impacted a few environmental
system. Our environmental
our site in concurrence to the parameters as they are related to
performance under various key
saying 'what gets measured, gets the fixed manufacturing demands.
indicators in the last three years is
managed'. To guide our actions in
summarized below.
this direction, the environmental
Production Trend (Overall)
70000 63379
60000
46148
50000
Production (veh/year)
53810
40000
30000
20000
10000
0
FY07 FY08 FY09
Energy & Resource energy conservation activities in decreased by 23.25 percent and
the manufacturing plant by to 538 kWh per vehicle. This
Conservation Activities
embracing the Five Year action decline in consumption may be
towards maximizing the plan which sets the annual attributed to the increase in overall
efficiency of processes reduction targets for all production volumes which led to
environment parameters. the decrease in per vehicle
Energy and resource conservation consumption due to fixed loads. In
form the basic responsibility of
any company aspiring to be a. Electricity 2009, TKM focused on ensuring
the sustenance of energy saving
sustainable. Grappling with the Consumption: activities and kaizens with the
ever increasing consumption of following:
fossil fuels for energy production TKM's electricity consumption in
the production area has 1) High and low pressure air lines
and the consequent CO2
emissions is a major hurdle decreased as compared to last 2) Energy training to TL's and
towards achieving environmental year. By the end of 2009, the GL's
sustainability. TKM is promoting average amount of energy 3) ESCO kaizen implementation.
required to produce a vehicle

Electricity Consumption Trend Electricity Consumption per vehicle

Annual Electricity Consumption
800 34500
701 34117
700
33500
600 32350
593 538
32500
(Mil MWhr)
500 31931
[kWhr/veh]
400 31500
300
30500
200
29500
100
0 28500
FY07 FY08 FY09
minimum of 4.4 m3 per vehicle. TKM continued to target the

b. Water Water usage levels, like those for elimination of unnecessary water
Consumption: energy, were affected by the usage through kaizen and by the
increase in production volume. implementation of best process
During the reporting period, the Considerable efforts were made technology such as Membrane
amount of water required to towards monitoring and Bio-Reactor (MBR) and Reverse
produce one vehicle decreased standardizing day-to-day Osmosis (RO) treatments that
by 20.5 percent as compared to consumption. allow the recycling of wastewater.
the previous year, to reach a
Water Consumption per vehicle

Water Consumption Trend
Annual Water Consumption
6.00 5.54
300
5.02 4.40
5.00 250
4.00 200
(Mil m3/year)
[m3/veh]
3.00 150
2.00 100
270 256 279
1.00 50
0.00 0
FY07 FY08 FY09

energy source for heating trend as compared to the last
c. LPG Consumption: purposes in ovens and boilers at financial year.
Liquefied Petroleum Gas (LPG) TKM. The LPG usage was also
serves as the prominent primary observed to be on a decreasing
LPG Consumption per vehicle

LPG Consumption Trend Annual LPG Consumption
40 1800
1777
35
36.23 1750
30
29.65 28.03
1700
25 1672
(tons/year)
(kg/veh)
20 1650
1595
15
1600
10
1550
5
0 1500
FY07 FY08 FY09
This year, the LPG consumption concern related to the impacts of

fell to an average of 28.03 the manufacturing facility on the
kg/vehicle by 22.63 percent as environment include the emission
compared to the previous year. of pollutant gases (CO2) and
The main activity that was taken vapors (VOC).
up at the paint shop to conserve
LPG was the Oven and Booth a. VOC Management
temperature control optimization
and the management of the chiller Thinner based paint used on
operation based on seasonal automobiles contains VOCs
variation. However, owing to the (Volatile Organic Compounds),
increase of demand in the market, which are known to cause odor
the per vehicle consumption and health hazards. They have
decreased due to the fixed also been attributed to the
consumption of LPG in other formation of photochemical smog.
processes, irrespective of the It is therefore necessary to reduce
vehicles produced. their use.
Towards Zeronizing Although, there is no requirement

or any law on VOC emission
Impacts on Environment by control in India, we at TKM have
Reducing Emissions & proactively taken up activities
Waste aimed at reducing VOCs. This
aims at creating a better and safe
Concurrent to the Toyota Earth environment for the future
Charter which stresses on zero generations as the VOCs have the
pollutant discharge, TKM has also potential of accelerating global
adopted the same in its warming and producing
Environmental Policy. The areas of photochemical smog.

VOC Emission Trend

VOC Emission
55
50.3
50
48.3
45
45.1 43.2
VOC gm/m2
40
35
30
25
20
FY06 FY07 FY08 FY09
There has also been a marginal wastes to landfill', TKM has been Karnataka. In 2009 a considerable
decline in the VOC emission by 4 able to reduce its ecological reduction in hazardous waste
percent with the implementation of footprint in terms of waste quantum has been achieved in
various kaizen (improvement disposal. With the ideology of the light of activities promoted to
activities). Transfer efficiency 'source reduction is to waste what reduce unnecessary moisture
improvement in paint guns and preventive medicine is to health', content in the sludges. This led to
robots through distance reduction, we have two main action an average reduction of 26
enhancing washing thinner usage guidelines towards our waste percent in hazardous waste as
in bumper and resin shops, management activities: compared to the previous year.
solvent consumption reduction in However there has been an
manual cleaning during the i. Ensuring 100 percent increase of 15 percent in the non-
painting process and in robot segregation and reuse/recycle hazardous waste quantity
operation are a few practices that of non-hazardous process resulting from the introduction of a
have been implemented. By waste new model. With the introduction
following these practices, we have ii. To achieve zero hazardous of the Fortuner in the second half
retained the global number one waste disposal at landfill of this year, the packing material
position among all Toyota affiliates waste contributed greatly to the
having thinner based painting TKM has entered its second year increase in non-hazardous waste.
processes. in accomplishing the target of Though, we would like to draw the
'zero hazardous wastes to landfill'. reader's attention to the fact that
b. Waste Hazardous waste disposal is the waste under this category is
being carried out through co- subjected to complete material
Management processing at the ACC Cement recovery and/or recycling.
Plant at Wadi, Gulbarga in
With the aim of achieving 'zero
Waste Generation Trend Hazardous Waste

Non Hazardous Waste
25
20
Waste (kg/veh)
8.5 8.0 5.9
15
10
14.9 14.5 16.7
0
FY07 FY08 FY09

Eco-initiatives : Towards an Eco-Friendly Plant
this regard, a methodological area. Eco-Kaizen includes all the
approach of Eco-Mind, Eco-Kaizen improvement initiatives that are
and Eco-Showcase have been taken towards creating a
taken up to sensitize our sustainable plant and a low carbon
ECO-Friendly Plant
ECO MIND employees and the community at society.
ECO KAIZEN
large. We aim to promote
sustainability in all our operations. Eco-Showcase: Eco-
Showcase is an effort to promote
Eco-Mind: Eco-Mind is a culture TKM's eco spirit to the community
that we believe must get imbibed and the neighborhood. The
ECO SHOWCASE
into the minds of our team activities include social outreach
members so that they start thinking activities involving our external
TKM approach to a Sustainable about the environment in their lives stakeholders whether they are our
Eco-Friendly Plant both inside and outside the suppliers, dealers or customers
company. Eco-Mind activities and the surrounding eco-system
include all initiatives aimed at too.
Toyota Kirloskar Motor is creating an environmentally
continuously moving towards Several activities have been
conscious citizen. In other words,
sustainability in all its operations to initiated at TKM to promote Eco-
an employee with an Eco-Mind will
reform itself into an eco factory in Mind, Eco-Kaizen and Eco-
always think and act in the best
harmony with nature. TKM has Showcase among the team
interests of the environment.
devised and implemented a members. Some of the key
activities that have been
comprehensive approach towards Eco-Kaizen: Eco-Kaizen is a implemented in the past year
sustainability right from the grass- continuous improvement activity
root level, i.e. the employees. In include:
that can be executed at the work
Logistics Kaizen
BEFORE AFTER
8 days Transit Lead 4 days Transit Lead

time = 5 Days time = 2 Days
RPC, Gurgaon NPC RPC, Gurgaon NPC

Dealer (Back Order) Dealer (Back Order)
Bangalore Bangalore
Truck
Train
Overall lead time

reduction is 4 days
Customer Customer
Kaizen Idea: Bangalore) and RPC (Regional customer service in town and
Parts Center, Gurgaon) was achieve enhanced customer
Train Logistics Introduction in through Transystem trucks which satisfaction. Since September
Serviceparts Operation between had a high transit time. The 2009 all RPC back order
NPC (National Parts Center, emergency/back order parts serviceparts are transported by
Bangalore) and RPC (Regional reaching the customer on time was train six days a week.
Parts Center, Gurgaon) for back not always guaranteed.
order parts. Result:
Action Taken: • Overall lead time reduction by
Trial Period:
A trial survey was conducted to four days.
July 2009 to August 2009 check the feasibility of transport by
• Improved customer service,
Background: train and this had the positive
customer satisfaction and
result of saving lead time. By this
The Serviceparts flow between quality of delivery.
kaizen we aim to be the best
NPC (National Parts Center,

Voluntary Afforestation Activity

Continuing our efforts to in voluntary afforestation first work shift. This year, TKM
create an environment programmes between August has planted about 64,200
friendly company, voluntary 29 and September 5. saplings over an area of
afforestation activities were 21400 square metres within
conducted within the Keeping up the good spirit the manufacturing facility. The
company premises. About created on June 21, team average plant survival rate
600 team members members voluntarily was about 98.8 percent.
enthusiastically participated participated to plant another
10,500 saplings after their
Glimpses of our Voluntary Afforestation Activity

Social
Performance
During the last decade, Toyota
Kirloskar Motor has expanded its
production and made advances in
order to satisfy the needs of Indian
customers buying Toyota vehicles.
As the business grew, the company
has contributed jobs and trade to
the local economies in the country,
enabling it to re-invest the profits
earned from growth into green
technologies and other community
development initiatives for the future.
Social Performance - Customer
actions are outlined in this section: to address a deterioration in

Special Feature: information gathering and
Quality Issues and inconsistencies that arose in
Response in India: information sharing practices
Action between the headquarters, the
Toyota in India strives to deliver
regional offices and dealerships.
With the prime ideology of quality products to its customers
'Customer First', TKM has made but has also been concerned
continued efforts to understand about the recall of Toyota vehicles
safety and quality objectives from worldwide. This did not affect
a technological and professional Toyota's operations in India as the Objective for Establishment
standpoint and has been able to concerned models are not sold or of the Special Committee
achieve them in material terms. manufactured in India. As a pro- for Global Quality.
However, in recent months, there active measure, in-line with the
have been several quality and establishment of the Global Review all the working
safety concerns related to the use Quality Committee by TMC, the steps from the customer's
of Toyota products in several India Quality Committee has been perspective, through the
regions of the world. formed to enhance the quality and new interface, and
to respond to customer reinforce the quality
Toyota has looked at this issue as requirements dynamically. assurance system:
an opportunity for renewal and
improvement. We at TKM have India Quality Committee has been • Development
also followed the same in India. launched at TKM in order to
We have taken this opportunity to • Procurement (suppliers)
achieve a customer interface that
encourage every employee to is based on safety and • Production
address the issues proactively by confidence. This is in concurrence
re-examining and recommitting to • Engineering
with the establishment of the
principles such as customer first, Special Committee for Global • Sales and service
the customer's perspective and Quality chaired by the TMC
Genchi Genbutsu (on-site, hands- President, Akio Toyoda. A series
on experience). The specific of approaches were implemented

The purpose of the Committee is

to listen more respectfully than Key Objectives Identified by the Special Committee for Global
ever to customers from every Quality
region. This demonstrates the • Early Detection and Early Resolution (EDER) based on
company's concerted commitment customers' opinions
to a fundamental review of our
• Human resource development that reinforces our Customer First
operational attitudes and our aim
approach
of establishing a customer
interface in every business sector • Assessment by outside experts
across Toyota's entities worldwide.
• Product development focused on customer safety and
The improvement plans worked
confidence
out by the Committee will be
verified and assessed by four • Independence of quality management activities in each region
external advisors as well. of the world
India Quality Committee

Quality concerns are an have been taken up to
important issue in India as ensure a 'Quality
the EFC project is the first Revolution', to reinforce
major project for Toyota customer confidence in
after the global recall and India and the Asia Pacific
quality safety issues. The region alike.
small car project has been The India Quality
a unique project with many Committee is being
new points -the first headed by Mr. Hiroshi
country of launch, a Nakagawa, MD, TKM and
completely new model, reinforces customer
new plant, new segment, confidence by promoting
new suppliers and new activities required to
dealers. ensure a 'Quality
Hence, special activities Revolution'. Proceedings at the IQC activities
Customer First Exhibition

Based on our philosophy of
harmonious growth, Toyota Motor
Corporation is committed to
passing on to TKM the DNA of the
Toyota Way, which is defined by
our 'Customer First' approach. This
approach has helped us form
successful relationships with our
suppliers and dealers and develop
a solid business base in India.
The 'Customer First' exhibition was

organized at TKM to motivate the
suppliers and the in-house team to
design and manufacture quality
through flexibility and cooperation
keeping the customer in mind. This
event provided an opportunity to
strengthen the concept of always
keeping the customer first, among
Glimpses of the Customer First Exhibition (Top left picture: Visit by Hon.
our key stakeholders, namely
Home Minister of Karnataka State to the exhibition)
employees and suppliers.

This activity is aimed at enhancing

Special Feature: the Team member's Quality Mind
Product Environment
Jikotei Kanketsu Awareness through 'Jikotei Stewardship:
Kanketsu' (Built-In Quality through
(JKK): Built - In Quality ownership).
Changing
with Ownership Environment Scenario
In the area of quality, which is the The rapidly growing population
key focus of the customer first and economic development are
policy, TKM has been promoting leading to a depletion of natural
company-wide Customer First resources which is causing
(CF) activities, with the goal of environmental degradation. The
meeting the expectations of absence of required natural
customers and society at large, resources can retard the process
based on an enhanced of socio-economic development.
awareness of relevant issues. The Changing the consumption
focus of these activities in 2009- pattern has led to a rising demand
2010 was Jikotei Kanketsu*. for energy. The final outcome of
degradation is air pollution, global
*Jikotei Kanketsu is the concept warming and severe climate
of a defect-free process change.
completion to ensure that no
defective product leaves the JKK activity review by the TKM Top
production process. Management
Toyota in India:
Innova Ranked #1 in MUV/MPV segment
Toyota India understands in Initial Quality by JD Power Asia Pacific for
the need for minimizing the FIFTH CONSECUTIVE YEAR.
impact of its vehicles on the
environment and the effects
it has on climate change
and biodiversity. It believes
in reducing its impact with
the following concepts:
Reducing, Eliminating,
Improving and
Innovating
and switched to substances with

Based on our Guiding Elimination of lesser impact on the environment.
Principles, Toyota India Substances of
All Toyota products in India (parts
takes Initiatives to develop Concern (SOC) and vehicles) are SOC free.
and Promote Technologies Chemical substances of concern
like Lead, Mercury, Cadmium, and
which contribute to the Hexavalent Chromium have a
Protection as well as the serious impact on the environment
and human health. Toyota initiated
Development of Society. the elimination of SOC elements

Minimizing Environmental Impact through Eco -

Friendly Engines and Vehicles
engines. All Toyota vehicles strives to continuously build
Products and meet the Bharat IV emission more fuel efficient vehicles
Services norms applicable in India without compromising the
since April 2010. pleasure of driving. We
As a responsible vehicle continue to make
manufacturer, Toyota is improvements in gasoline and
engaged in developing a
Improving diesel engine technology as it
broad array of improvements Gasoline and will remain the mainstay for
in fuel efficiency and vehicle the next few decades. Power
emissions. Toyota India is Diesel Engine trains that run on a variety of
working on lowering the Technology power sources, including fuel
environmental impact of its efficient gasoline engines use
vehicles through the latest As the main automotive fuel is Toyota's VVT-i technology and
emission regulations for its petroleum based, Toyota its common rail direct
Bharat IV Compliant : Toyota D4-D [Diesel] and VVT-i Engines [Petrol]
time between the exhaust and vibrations than

Toyota VVTi Engine valve closing and the intake conventional diesel engines.
VVT-i (Variable Valve Timing valve opening results in Toyota D-4D engines provide
with Intelligence) is an improved engine efficiency. smooth and linear torque and
automobile variable valve also high power outputs. The
D-4D's rev range is also wider
timing technology developed Toyota D4D Engine than normal which is very
by Toyota. VVT-i which was
introduced in 1996 varies the D-4D stands for Direct useful and further enhances
timing of the intake valves by Injection 4 Stroke Common the driving experience. Toyota
adjusting the relationship Rail Diesel Engine. It is a uses VVT-i technology for its
between the camshaft drive combination of the direct gasoline range of vehicles in
(belt, scissor-gear or chain) injection and common rail India, including the Innova,
and the intake camshaft. diesel injection systems and Corolla and Camry. The D-4D
Engine oil pressure is applied has been designed to provide range of common rail direct
to an actuator to adjust the higher output power, better injection engines is used in
camshaft position. fuel economy, lower exhaust the Innova, Fortuner, Land
Adjustments in the overlap emissions and lower noise Cruiser Prado and also the LC
200.

Moving Forward :
With the Government of India enhancing the use of the cleaner fuel, CNG, Toyota India introduced the alternate
fuel CNG powered Innova and Corolla in 2009-2010.
CNG Innova and Corolla Altis showcased at Delhi Auto-Expo in January 2010

Social Performance - Employees
TKM perceives that human Towards realizing this goal, TKM • Safe working environment
resource is the most valuable has imbibed the following four
asset to the organization. The point requisite in its activities while • Fair evaluation and proper
ultimate objective of human engaging with our employees who treatment
resource management is to are our key stakeholders:
establish mutual trust and • Creating an environment for
responsibility between the • Maintain secure working human resources development
company and its employees. conditions
Basic Statistics in relation to the Current Status of Employment

The entire workforce based on the type of employment, employment contract, and region.
a. Type of employees b. Unionized and Non-unionized employees
Sl. No. Particulars Number Sl. No. Particulars Number

1 Permanent employees 4109
Unionized employees 1624
2 Temporary employees 1528
Non-unionized employees 2485
Total 5637
Total 4109
Temporary employees 27% Unionized employees 40%
Permanent employees 73% Non-unionized employees 60%

c. Female Vs. Male employees About 40 percent of the employees are covered by
collective bargaining agreements.
• In India, the workforce in the automobile
manufacturing industry has always been male Sl. No. Particulars Number %
dominated and there are very few women.
1 Unionized employees 1624 40%
• The local applicable laws do not permit women to
2 Non-unionized employees 2485 60%
work between 7 pm and 6 am.
• However, since the company works in shifts,
female team members are accommodated in the A minimum notice period of 21 days, as per the law is
shift from 8:45 am to 5:30 pm. followed in case there are any significant operational
changes.
Gender-wise Employment Ratio
Team members play a vital role in ensuring health and
Female 2% safety at the workplace. They are involved in the
Male 98% following programs to promote a safe workplace:
• Morning safety meeting (KYT)

Rate of employee turnover • Safety pledge before work
Compared to the industry average of 12 percent,
TKM's employee turnover has been very much under • Kaizen activities to improve safety
control.
• Safety Committees
Sl. No. Employee Turnover 2009 % • Workplace Committees
1 Grade-8 [Blue-Collar] 1.5%
2 Grade-7 and above [White-Collar] 3.4%
TKM does not have any part-time employees.

Benefits are provided to full-time employees as per
the law of the land. From the mid to long-term point of
view, benefits and welfare facilities are provided to all
full-time employees.
TKM's Labor Management:

Providing equal opportunity to all
TKM strongly practices the principle of mutual trust
and team work in issues concerning labor
management. This involves maintaining thorough
communications and promoting fair evaluation and
treatment for all.
TKM ensures that there is no discrimination in terms

of race, religion, caste, sex, national origin or any
other factor deemed unlawful by the applicable laws
and regulations. Activities like recruitment, promotion,
compensation, benefits, training and the use of
facilities are provided to all employees and the
policies are also equally applied at all levels.
The following is a brief description of the significant

labor management practices at TKM:
1. Coverage under collective bargaining and freedom

of association:

Occupational Health safety promotion activities • Counselling

include:
• Annual medical check-up
No occupational diseases campaign
have been reported due to • Common fevers, H1N1,
workplace conditions. dengue, malaria and other
Ensuring the safety and health
epidemic infection
of team members is given the
All team members are preventions
utmost importance during
educated periodically about • Smoking de-addiction formal agreements with trade
various diseases. campaign unions.
Key issues covered under • Health awareness during
occupational health and induction training
comprehending the impact it

has on the company and its
employees, based on local
labor practices and
characteristics of the labor
market. The benefits, working
hours and welfare facilities,
along with the wages are
comprehensively reviewed
from time to time.
• TKM reinforces the company's
basic philosophy of mutual
trust and responsibility and
recognizes its team members
Joint Declaration signing by Employees Union representative [Left: Mr. Deepak
as the most valuable resource
RS] and Top management [Right: Mr. H Nakagawa, MD-TKM]
of the company. We strive to
provide long-term stable
All human development programs composition of governance
employment and to maintain
aim at ensuring a lifelong learning. bodies and the breakdown of
and improve working
A Work Life Plan is designed to employees per category
conditions balanced with the
meet the career needs of all team according to indicators of
growth of the company.
members. diversity. TKM works with diverse
communities with people of • TKM complies with local laws
The entire workforce is reviewed and regulations as far as the
different ages, religions and from
regularly on its performance and local minimum wage is
different geographical regions.
career development. The following concerned. We have a
is a brief overview of the
methodology used: Wages standard entry level wage that
is competitive with comparable
The company grasps the abilities • The salary for men and women market levels. This secures the
and characteristics of each are equal in the same required human resources and
employee accurately and categories. Equal pay for fosters a sense of security
objectively, to develop and equal work is practiced at among the employees.
maximize the utilization of TKM. • Based on the local labor
personnel through performance practices and characteristics
• Toyota's objective is to raise
appraisal. of the labor market, TKM
employee morale and heighten
TKM also maintains and raises productivity by providing determines the elements such
employee morale by properly wages, which balance the as job classifications,
evaluating and rewarding their three aspects of company positions, length of service,
abilities and their contribution to cost, employee livelihood, and inflation and commodity prices
the company. the market price of labor. which are reflected in the
wage system.
The opportunity is open to both • The wages are determined
men and women in the after accurately

• In an easier, more efficient way

Local hiring policies
• At a lower cost
• As a hiring policy, first of all, a clear-cut
clarification of the capabilities and skill sets 'Good thinking, good products' (words by Sakichi
required for employment is determined. Toyota) is the baseline for team members to provide
their ideas/recommendations. We believe in
• The human resources division has an established
combining the creative ability of our team members to
hiring policy. According to this policy, the hiring
make products which will satisfy our customers. On
activities are carried out from a company-wide
an average, 6000 suggestions are implemented
perspective.
every month at TKM.
• Quantity: Hiring the optimal number of personnel,
based on mid to long-term business plans. Highlights of the Suggestion Scheme
• Quality: The hiring is based on a comprehensive • Since its inception 4, 92,863 suggestions have
perspective including specialized abilities with been implemented!
mid to long-term potential.
• An average of 44,000 suggestions per year!
The following are the activities conducted • About 86,000 suggestions implemented in 2009!
while TKM is hiring:
• Conduct PR activities (Advertising)
• Establishment of a selection method according to Highlights of the Suggestion Scheme
the capabilities and skill sets required
• Securing objectivity and fairness within the
selection process 106722
100
• Selection process
• Induction training and placement 90
No. of Suggestions given by Employees
80
Employee Development
70 79298 86417
Programs: Creative Suggestion
60
Scheme
50
The Creative Suggestion Scheme (CSS) is a concrete
example of the effort Toyota makes to utilize the ideas 40
of each employee to build the finest automobile
30
possible. Through this system, the team members of
Toyota take it upon themselves to resolve the 20
questions and problems that occur at work - to do
Kaizen. We strive to receive ideas/recommendations 10
for 0
• Making a better product FY07 FY08 FY09
• With greater safety
QCC Activity Review by TKM Top Management External recognition by CII to TKM QCC Team

Employee Development Programs: Quality Control Circle

• Quality Control Circle principles, QC steps and process, it helps to
(QCC) is an activity of a QC tools. improve their capabilities
group of people in the and facilitates good
• QCC helps to generate
same workplace. The communication at the
ideas and implements the
circle members come workplace and ensures a
recommendations made
together to solve problems better workplace.
by circle members. In the
according to the QC basic
The company takes every • As part of the induction • No incidents of legal actions
measure to prevent corruption in program, anti-corruption for anti-competitive behavior,
all its business units. Until now policies and procedures are anti-trust, and monopoly
there have been no such explained to all employees. practices have been reported
violations. until now.
• The whistleblower policy is in
• All employees are educated place to create awareness on • TKM strives to ensure a 100
on the organization's anti- corruption issues. percent legal compliance of all
corruption policies and local laws and regulations.
• Until now, no incident of
procedures.
corruption has been reported.
Assessment of effectiveness of
deployment of resources for the
benefit of the community.
TKM assesses its corporate For example: The
social responsibilities government education
through a regular interaction department and the local
with the employees, local Panchayats are involved in
government bodies and identifying beneficiaries and
people's representatives. distributing education
We also conducted a survey materials to the local
in 2005-2006 to understand community. Similarly, all
the impact of our activities are planned and
contributions on the local implemented with the
community. involvement of the
stakeholders. The company
All the stakeholders leadership is always the
including the local guiding force behind all
community, local activities. The Top
government and Management of the
government departments company also actively
are involved in planning and participates in the activities
implementing social implemented by TKM.
development programmes.

Social Performance - Society
Books and Bags distribution at the Local community schools
Community Development communities. With the objectives a clear vision of growing with the
of our parent company, Toyota society and is also focused on the
Initiatives
Motor Corporation in mind, TKM welfare of its neighborhood. The
At TKM, every effort is made to partners with organizations, following are the major
contribute to society. Toyota schools, universities and other efforts/activities undertaken by the
believes in helping people businesses to support community company in this regard.
improve the quality of life in their development programs. TKM has
Education
Education plays an important role in shaping our future. Toyota is promoting education by supporting
local school children.
• Residential School: TKM children. As of 2010, this
has re-constructed a programme benefited
residential school which more than 5000 local
houses 50 students school children from 85
mainly belonging to schools. This is a
economically weaker continuous activity,
sections at Byramangala, covering an additional ten
near TKM's plant in the schools every year. TKM
Bidadi Industrial Area. has also contributed
library books and
• Books and bags
laboratory equipment to
distribution: Every year
educational institutions
TKM distributes books
and also built the
and bags to local school
infrastructure needed.

Skill Development and Technical Training:

Toyota Technical Training
Institute (TTTI): This secondary education. started in 2007 and takes

institute is a state-of-the- The institute is fully in 64 students per year.
art facility which provides focused on training only 192 students have
a three-year, full-time the rural youth in undergone training as of
course on automobile Karnataka and now and a new batch of
technology, free of cost successful candidates 64 students joined in
to rural students who are given job August 2010. The first
have passed their higher opportunities. It was batch graduated in 2010.
[Top] Dr. APJ Abdul Kalam, Former President of India, addressing the first batch of graduating students
Glimpses of the Graduation Ceremony and the Plant visit by Dr.APJ Abdul Kalam
Toyota Technical Education Programme (TTEP):
This programme is focused on training the Industrial candidates are given job opportunities at Toyota
Training Institute (ITI) students across the country in dealerships.
advanced automobile technology. The successful
For the first time in India, a course on Body and Painting is introduced at an institute in 2009.
The total no. of institutes implementing T-TEP: 18
The total no. of students who have participated in the T-TEP course: 428

Traffic Safety:
Glimpses of TSEP activity along with Bangalore Traffic Police
Keeping in mind the growing traffic • In 2009-2010, TSEP was the city traffic police to
conditions in cities, Toyota has conducted in five metros educate school children on
now started to create awareness (Delhi, Mumbai, Chennai, road safety, the forming of
on traffic safety among school Bangalore and Kolkata) TSEP clubs in schools (which
children through the Toyota Safety covering 100,000 children. was already implemented in
Education Programme. The Toyota the previous years but needs
Safety Education Programme • In the current year 2010-2011, to be continued) and
(TSEP) is an interactive learning the TSEP plans to continue in extending the TSEP reach
programme on traffic safety the same cities with special through Toyota dealerships are
specially designed for children in modules to sustain the some of the modules.
the age group of 6 to 12 years. programme. Partnering with
Sanitation programme for the local community
Sanitation program inauguration One of the 310 Project beneficiaries
TKM has conducted a survey on by implementing a sanitation under the Manchanayakanahalli

the needs of the local community programme for the local Gram Panchayat. By this activity,
around the plant and it was community around the factory the Manchanayakanahalli Gram
observed that some villages did catchments area. TKM is Panchayat will achieve total
not have the basic toilet facilities in supporting the local community by sanitation and will qualify for the
their homes. TKM considered this constructing 310 individual toilets presidential award for total
problem and addressed the issue for each household in six villages sanitation in a Gram Panchayat.

Environment
Plant visit by Local school children Glimpse of Science fair organized
At Toyota, the commitment to the activities in the local community them on environment
environment extends beyond our such as conservation.
products. Whether it is planting
trees or organizing seminars on • Painting and quiz/project • Distribution of fruit bearing
rainwater harvesting for the local competitions for the local plants to all participants of the
Panchayats, TKM is working school children in Ramanagara Environment Day event.
towards making the local where winners are awarded
prizes. • Involving team members and
community a better place. conducting plastic free
As part of the environment month • Organizing a TKM plant visit campaigns in the local areas.
celebration, TKM conducts several for school children to educate
Help During Natural Calamities:

TKM's CSR Activity Expenditure
In Mil. Rs.
120
106.5 108
100
85.5
80
Handing over to Chief Minister of Karnataka [Mr. BS 60

Yediyurappa - 3rd from left]
TKM contributed Rs. 20 million and a day's salary of 40

all its employees to the Karnataka Chief Minister's
Relief Fund towards relief and rehabilitation for the
North Karnataka flood affected victims in 2009-2010. 20
TKM contributed Rs. 1 million to the Andhra Pradesh

Chief Minister's Relief Fund towards relief and 0
rehabilitation for the Andhra Pradesh flood affected FY07 FY08 FY09
victims in 2009-2010.

Social Performance - Business Partners
Dealerships
Toyota does not just limit the • Declaration of abidance to law

environment protection efforts to its
Dealer Environmental
• Proper storage and treatment
own premises but encourages its Risk Audit Program of hazardous waste
associates, both suppliers and
dealers to also do their bit. In
(DERAP) - • Proper treatment of drainage
water
India, TKM has been actively Sustenance Tool
involved from the very beginning in • Proper recovery of HFC (AC
expanding its corporate social Complementing the ISO 14001 gas)
responsibilities. As a part of our certification, this programme is
global commitment, our dealers designed by TMC to ensure the Against the set target of 80
also take part in protecting the minimum requirement of percent by TMC, more than 90
environment by minimizing the environment risk management at percent of TKM dealerships have
impact of their activities on the dealer workshops. DERAP achieved compliance with this
environment through pollution encompasses five crucial aspects programme. This is further driven
control, conservation of natural of environment management; by kaizen or continuous
resources and continual improvement both by the dealers
• Presence of environment and TKM.
improvement.
promotion staff

One of the biggest challenges authorized collectors of hazardous (EMS). ISO 14001 certification
faced by TKM dealers is the safe waste. Meanwhile with a three recommended by TKM to its
disposal of hazardous waste. At year plan, we will be able to dealers, acts as a tool to structure
the dealer level the hazardous achieve an effective and efficient the effectiveness of the EMS
wastes have been identified and EMS system at all dealerships. implementation at dealerships. As
stored safely. However, the of now more than 70% of our TKM
mechanism to collect it from there Dealer ISO 14001 dealerships are ISO certified. At
for incineration/recycling is not Certification Promotion remaining new dealerships it is in
adequately established in India at progress. It has helped in creating
present. To help its dealers TKM supports its dealers to awareness about Environment
overcome this plight, TKM has maintain a very effective conscious function at the
initiated efforts to identify Environment Management System dealerships.
Nippon Toyota
Dealership at Kerala
received commendation
certificate from Kerala
State Pollution Control
board for its best
Environmental Practices
& sustained efforts
towards pollution control
Current Dealer Network

Total : 82 Outlets
[as on March 2010]

ISO Certification Status of Suppliers [Core]
ISO Certification Status DERAP Compliance Status
85% Certified 78% Compliant
Certified 70 Under Progress 18
Under Progress 12 Compliant 64
Voluntary Environment campaign in Uttaranchal are some towards preserving the precious
of the activities that TKM has environment is appreciated by its
Initiatives
participated in. customers as well. The customers
Taken/Achievements by the gain confidence in their dealers
Dealership Such initiatives are duly not only because of the eco-
acknowledged by the government friendly products but their service
TKM dealers actively participate in too. For example, Nippon Toyota in too. Activities like safe disposal of
various initiatives taken by the Kerala has been awarded by the discharged automotive batteries
government as well as other State Pollution Control Board for are actively supported by the
bodies like SIAM towards three consecutive years. customers. TKM has further plans
environment conservation. The to enhance awareness about
free pollution check campaign by Customer Recognition environment conservation among
SIAM on the World Environment its customers through its
Day and the 'Say No to Plastic' The effort of TKM and its dealers
dealerships.
Promotion of best environment practices at dealership facilities through DERAP
Wastewater Treatment Safe collection & Recycling of Waste Oil Plant
Segregation & Collection of Waste & recycling

Dealer Level Corporate Social Responsibility Activity
• Until today, TKM has experience and feedback to Proposal:

conducted CSR activities at owners
the company level only (Clean Conduct CSR activities for drivers
• With the view of reaching out
Bangalore, flood relief, village with the theme 'Health, Safety and
to a larger audience before
adoption etc.) Education'.
the launch of Etios and also as
• As more than 50 percent of a brand building activity, there
Toyota vehicles are driven by is a need to conduct CSR
Activity Details:
chauffeurs, they are the activities at the dealer level Activity duration: A total of seven
potential interest group for • Dealers have also started days in May 2010 (after 10th May
TKM's CSR activities customer retention activities 2010) Target Drivers ~10,000
• Drivers are a strong link for drivers, as a reflection of
between the service team and the seasonal service
owners and also influence the campaigns
CSI ratings based on their
Driver waiting for vehicle Physical Health Check-up 15 Min. Safety Training by Distribution of School Kit
service by the Doctor the Dealer and ETIOS Branded T-shirt
Toyota Q-Promise
Towards our aspiration of taking
Toyota closer to our customer's
heart, we have launched the
"Toyota Q-Promise" campaign.
Toyota Q-Promise is to assure
Toyota Quality for delightful
ownership with the core theme of
"Customer First".

Safety Awareness Program at dealership

Background importance of 4S and safety. Purpose
• As per the study regarding the • As a part of the safety • To encourage and motivate
4S and safety conditions at all awareness program, Ravindu team members to take the
dealerships, much Toyota (Bangalore), Lanson required safety precautions at
improvement is required. Toyota (Chennai) and Harsha work.
Toyota (Chennai) started an in-
• At the dealer technical • To follow safety rules at the
house safety program by
conference held on November dealership.
conducting the 'best slogan'
26, 2009, TKM showcased the contest.
Best Slogan Award: The slogan is displayed at all key areas of the dealership to educate team members about safety.
Develop the safety measures today; See the No safety know pains,
Use safety process and prevent Accident! healthy world tomorrow. Know safety no pains.
Ravindu Toyota: Lanson Toyota: Harsha Toyota:

Winner: Mr. Gopalappa Winner: Mr. Narayana Pillai and Mr. Winner: Mrs. Selvanayaki
Elayaraja
Best Practice at Vehicle Washing Area: Galaxy Toyota (Azadpur-Delhi)
The professional uniform of the washing Floor mat cleaning and drying done Good 4S condition of the washing area.
team indicating area of work. as per TKM recommendations.

Business Partners - Suppliers
The automotive sector is subject equipment (OE) suppliers. with the utmost respect to
to enormous global pressures to everyone.
improve product quality whilst at Toyota has been propagating and
the same time reducing cost. undertaking initiatives to all its TKM has been enabling its
These pressures impact car consolidated subsidiaries around suppliers to ensure the long-term
manufacturers and that has strong the world, to contribute to the and stable procurement of the
effects on the flow to suppliers. An harmonious and sustainable best products at the lowest prices
innovative, capable and cost development of society and the in the most speedy and timely
competitive supplier base is earth. Toyota expects its business manner. TKM also ensures
critical to the viability of the Indian partners to support this initiative periodical reviews and confirms
automotive industry. Toyota and comply fully with all the status of implementation of the
Kirloskar Motor has almost 3500 applicable laws, regulations and activities described in the
suppliers, of which 82 are original societal norms both in Japan and guidelines.
overseas and conduct activities

TKM Purchasing Policy.

Toyota Kirloskar Motor's fundamental approach to building business relationships has not changed since the
foundation of the Toyota Motor Corporation (TMC) 70 years ago. The company's approach is articulated in the
Purchasing Mission. A supply based company that gains the respect and trust of society while remaining
competitive and long-term provides a stable procurement of the best products at the best prices and in the best
1. Fair competition 2. Mutual benefit based 3. Contributing to the

based on an open-door on mutual trust. local economic vitality
policy Mutual benefit based on mutual and being a good
Fair competition based on an open trust ensuring that the purchasing corporate citizen.
door policy supporting TKM's aim activities are managed by equal
business partners and result in an Toyota aspires to be a good
of continuously improving the corporate citizen by contributing to
supplier base and preparing a even stronger interdependent
relationship based on openness local economies and societies thus
solid foundation for the future. contributing to the company's
and honesty.
vision even in these challenging
times.
Supplier Development programs: Towards Sustainable Supplier Base

Toyota Basic Approach to promote to implement the same to Toyota is promoting TPS
entire scope of supplier operation implementation at suppliers to
supplier : “SUPPLIER
irrespective of customer. enhance their productivity and
PARTNER” achieve mutual growth. Toyota
With this, Toyota’s Stable and Kirloskar Motor, through its
Supplier development programs sustainable supplier base can Supplier's Association is jointly
are designed to give a sense of contribute to the growing Auto working to expand and enhance
Partnership to the supplier, Industry in tern to the country's TPS culture among all Toyota
through which we can work along economy. suppliers.
with supplier partners .
We at TKM, work jointly with

Toyota Production System
Supplier to implement Toyota [TPS] promotion initiative
Production System. The scope of
TPS is the key to the success of
implementation is not constrained
Toyota operations worldwide.
to Toyota’s Business , but we
Training to Supplier group and TKM Top Management Visit to Supplier facility as a part of TPS implementation review

Quality Circle Competition: To Bring out The identified suppliers will be visited by nominated
members from quality, production, & engineering
the Best in the Suppliers
groups of TKM to understand and implement the
Quality Circle Concept: The supplier team solves the best practices.
identified problem in their respective companies.
Gemba QCC: Judges will visit participating
Overseas visit : To benchmark the Supplier's
Association activities at TMT / TMMIN. To enhance
companies to understand their implementations and
TPS implementation and other activities at
also guide the QCC team for further improvement.
showcased suppliers.
Regional QCC: All companies assemble to present
their presentations. Regional winners are decided
and awarded.
Final QCC: Regional winners will compete in the
finals. The winners will then be decided and
awarded.
Benchmarking visit to TMT [Toyota Motors Thailand]
Safety promotion among supplier

Supplier activity review by TKM Top Management companies: TKM has been promoting mutually
beneficial safe working practices among its supplier
groups as a part of the CSR activities. The basic
approach is to promote awareness and inculcate
safe working conditions among the members to
avoid accidents.
QCC awarding
Kaizen Festival : Kaizen festival is an exhibition

where the suppliers display their best kaizen
[process improvements] under one roof. Three of the
best kaizens will be awarded during Annual Supplier
Meet.
Glimpse of Supplier Kaizen festival and information sharing
Showcase visits : Sharing the best practices of

identified companies among regional suppliers. Glimpses of Supplier group training on Occupational Health
and Safety

Environment Initiatives
performance. In addition to Chromium, Cadmium, Lead and
Green Purchase meeting traditional expectations of Mercury have been eliminated
Guidelines quality, service and price we give from almost all parts of the Innova,
preference to suppliers and Corolla and Fortuner at TKM.
Comprehensive environmental
products with better social and
management means looking Although, there is no requirement
environmental credentials.
beyond the boundaries of our own or law regarding the end of a
operations to the wider supply vehicle's life in India, we at TKM
chain. TKM has adopted the
Reduction in the use of have proactively taken up in early
'Green Purchasing Guidelines' Substances of elimination. This aims at creating a
policy which includes the Environmental Concern better and safe environment for
environmental criteria in every the future generations to come as
Toyota's global standard promotes
purchasing decision we make and the SOCs can be very toxic even
the elimination of substances of
encourages our suppliers to in small concentrations.
environment concern. Hexavalent
improve their environmental
Green Purchase Guidelines
ISO 14001 Elimination of Legal Compliance CO2 emission Waste

Action SOC
Certification Evaluation Control Management
Area
Elimination of Ensuring 100% Promote 3R and

Ensuring 100% TMC banned Compliance to Logistics reduce
certification by Applicable Optimization packaging
Action Chemicals at
2011 Legal waste
Plan all Suppliers
Acquisition of ISO 14001 requests that all suppliers create • Compliance with environmental
the systems necessary to carry laws and regulations
Certification:
out environmental preservation
• Enhancement of environmental
activities and constantly improve
performance
ISO Certification Status of them. To do this suppliers are
Suppliers requested to acquire the ISO Reduction of CO2
14001 certification.
98.64% Certified Emissions and the use of
Environmental initiatives packing and wrapping
related to suppliers materials in logistics:
business activities: The transportation of goods results
In addition to the initiatives taken in the consumption of energy and
by Toyota Motor Corporation reducing this consumption of
(TMC), Toyota Kirloskar Motor energy becomes a major issue.
(TKM) has set ambitious targets to Thus, TKM undertakes active
Certified 74
work on various environmental measures to reduce CO2
Under Progress 1 emissions (energy consumption)
improvement activities. Suppliers
delivering parts, raw materials and in logistics. TKM is also working to
Toyota Kirloskar Motor undertakes supplementary materials should reduce the use of packaging and
the systematic management of also take an active approach to wrapping materials. The suppliers
environmental preservation environmental initiatives as a part involved are also requested to
activities and works to of their business activities. implement environmental
continuously improve them. TKM measures in their logistic activities.

Economic
Performance
Economic Performance
The Indian automobile industry which symbolize the Toyota 2015. This will be achieved
demonstrated its resilience in the touchstone of refined quality and through the launch of its small car
face of a global downturn in 2010 high dependability. TKM has also Etios, another first for TKM and
by racking up sales of over 1.95 clearly announced its green vision Toyota. This prestigious project
million cars. During the same with its widely acclaimed Toyota has been executed with an outlay
period, TKM has introduced new Greenathon campaign and the of Rs 3,200 crore and was recently
models like the Fortuner and the introduction of the world renowned introduced in the market. With this,
Land Cruiser and achieved an all Prius, the only mass produced TKM will be a force to reckon with
time high sales of 63,824 hybrid vehicle. in the demanding Indian auto
numbers, representing a growth of market.
36 percent. TKM now has an TKM has targeted the growth of its
impressive array of vehicles all of market share to 10 percent by
Rs. in Mil
Key Financial Data 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006
Net Profit after Tax 3,093 1,226 2,073 1,057 534

Sales Revenue 56,037 37,603 41,016 37,344 33,352
Capital Expenditure 1,176 1,921 544 638 412
Total Assets 15,768 14,663 12,847 12,447 11,842
Production / Share of Turnover Market Share

Outputs* (%) [in respective segments] (%)
Product /
Services
07-08 08-09 09-10 07-08 08-09 09-10 07-08 08-09 09-10
1. INNOVA 35 34 32
2. COROLLA 53,774 46,251 63269 78 77 84 15 27 23
3. FORTUNER - - 54
4. CAMRY 24 9 6
5. PRADO 1,295 492 504 5 3 3 6 4 25
6. LAND CRUISER
- - 2
7. Traded Parts 176190 134412 17 19 14

Special Feature: Delhi Auto Expo Jan-10

leveraging the world-class
innovations that Toyota is globally
renowned for. Etios is a Greek
word and is derived from the word
'ethos' which means 'values'.
The concept cars were unveiled in

the presence of Mr. Kazuo
Okamoto (Vice Chairman, Toyota
Motor Corporation), Mr. Akira
Okabe (Senior Managing Director,
Toyota Motor Corporation), Mr.
Yashinori Noritake (Chief Engineer,
Product Planning for Passenger
Vehicle, Toyota Motor
Corporation), Mr. Vikram Kirloskar
(Vice Chairman, TKM), Mr. Hiroshi
Nakagawa (Managing Director,
TKM) and Mr. Sandeep Singh
Etios Concept unveiling by TMC and TKM Top Management (Deputy Managing Director,
The 10th Auto Expo was held at Marketing, TKM).
Toyota Kirloskar Motor Pvt. Ltd.
Pragati Maidan, New Delhi from (TKM) re-emphasized its Mr. Hiroshi Nakagawa, MD, TKM
January 5-11, 2010. This seven commitment to the Indian market further explained the theme, "At
day event was organized by the with its theme of 'Quality Toyota, we believe that as we start
Automotive Component Revolution' at the Auto Expo 2010. developing our processes, there is
Manufacturers Association of India One of the main attractions at the room for continuous improvement.
(ACMA), Confederation of Indian Auto Expo was the display of the We then create bigger innovations
Industry (CII) and the Society of Toyota compact car. for our cars and every little
Indian Automobile Manufacturers improvement is a step towards a
Association (SIAM) accredited by Toyota Kirloskar Motor Pvt. Ltd. revolution. In short, 'Quality
OICA. (TKM) unveiled the concept model Revolution' at Toyota begins with
of its soon to be launched new quality processes that help to
The seven day Auto Expo was compact cars in India. Named as
visited by over two million make quality products with quality
the Etios concept, it incorporates comfort, in turn, necessitating and
enthusiasts who came to catch the the advanced technology and
buzz surrounding some of the bringing about quality service,
superior quality features that have thereby improving one's quality of
most advanced cars showcased been developed by Toyota
by global majors. life for a better tomorrow."
specifically for India, by
Toyota Etios Sedan

Special Feature - Prius Launch in India
Left: Prius launch at Auto Expo 2010. Right: Appreciation of Prius by Noble Laureate Dr. RK Pachauri [Director-TERI]
Moving forward towards Greener Tomorrow : Toyota Prius for India

Toyota is committed to bringing (TKM) launched the latest third launch of the Prius, Toyota is keen
the latest technologies to India generation Prius in India at the to demonstrate its commitment to
that will help reduce the carbon Auto Expo in January 2010. Toyota offer the latest eco-friendly
footprint associated with its Prius will be imported as a CBU automotive technology to its
product use. In addition to the fuel (Completely Built Unit) and customers in India. Since
efficient and low emission Petrol marketed through its wide dealer becoming the world's first mass-
and Diesel engines, Toyota has network across India. produced hybrid vehicle in 1997,
introduced the globally renowned the Prius has received worldwide
Hybrid Technology in India. Speaking about the Prius launch acclaim, and we will continue to
in India, Mr. Sandeep Singh, DMD- popularize hybrid vehicles
Toyota Kirloskar Motor Pvt. Ltd. Marketing, TKM said, "Through the worldwide to further our efforts to
Special Feature : Toyota NDTV Greenathon II

was conducted to create
environmental awareness and
Toyota in association with NDTV
telecasted Greenathon II, a 24
hour live non-stop programme
which started at 7 pm on March 6,
2010 across the NDTV network
television channels. The
programme showcased a series of
on-the-ground activities all over
India.
The 24 hour programming was

hosted by NDTV's Vikram Chandra
and VJ Cyrus Broacha. Priyanka
After a hugely successful first Chopra, the campaign
The first campaign had gathered
year, NDTV and Toyota came up ambassador lent her support to
over Rs. 2 crore to light up 50
with the second wave of the the cause by co-anchoring the
villages in India for TERI's
'Green Campaign' which included event and urged people to do
'Lighting a Billion Lives' project.
the 24 hour non-stop television their bit for a greener tomorrow.
programming of 'Greenathon II'. The nationwide Green Campaign

The ultimate test of man's conscience is
his willingness to sacrifice something
today for future generations..."
— G Nelson
Former governor of Wisconsin, Co-founder of Earth Day
For further information and feedback on this Report please contact:
Safety & Environment Dept., Plant Administration Division,
TOYOTA KIRLOSKAR MOTOR PVT. LTD

Plot No.1, Bidadi Industrial Area, Bidadi, Ramanagar Dist.
Pin: 562 109. Karnataka, India
Tel: +91-80-66292098 / 66292382
Fax: +91-80-27287076 / 77
Email: eco@toyota-kirloskar.co.in
www.toyotabharat.com
© 2010 Toyota Kirloskar Motor Pvt. Ltd. Designed by www.cicadamedia.com

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About the Report

An online copy is available at:

About the report 02

TKM and Sustainability 23

Auto Expo 2010 (New Delhi) 60

Prius Launch in India 61

TOYOTA KIRLOSKAR MOTOR 05

Let's Grow Together,

20 % Reduction in Water Consumption

85 % Coverage of Dealerships Compliant with ISO 14001

98 % Coverage of Suppliers (core) Compliant with ISO 14001

Social performance 2008 2009 2010

Economic performance 2008 2009 2010

Net Profit after Tax [Rs. in Mil]

TOYOTA KIRLOSKAR MOTOR 07

The Guiding Principles

Toyota Earth Charter

The guiding principles at methods that it has embraced

TOYOTA KIRLOSKAR MOTOR 09

Toyota Global Vision 2020

As we look ahead to 2020, society and nature is

Toyota Global Vision

Where Toyota would like to be in 2020 TOYOTA GLOBAL VISION 2020

"Cycles of Nature" "Cycles of Industry"

10 TOYOTA KIRLOSKAR MOTOR

Toyota Earth Charter

II. Action Guidelines

Toyota Environmental Action Plan

TOYOTA KIRLOSKAR MOTOR 11

Company Overview: TKM at a glance

TOYOTA KIRLOSKAR MOTOR 13

Corolla Altis ,Innova & Fortuner model automobiles (manufactured in India)

Key Milestones of Toyota in India

1997 1999 December 2003 January

1997 1999 2001 2003

1997 August 2001 April

14 TOYOTA KIRLOSKAR MOTOR

Prius Land Cruiser

Manufacturing /trading of service parts for the above models.

2003 September 2007 August 2009 July

2003 2005 2007 2009 2009 2009

2005 February 2009 June 2009 August

TOYOTA KIRLOSKAR MOTOR 15

A bird's eye view of the Toyota Kirloskar Motor, Bidadi manufacturing

16 TOYOTA KIRLOSKAR MOTOR

Legend: 4, Afforestation Zone

1, Toyota Technical Training Institute [TTTI] 5, Plant 1

2, National Parts Centre [NPC] 6, Plant 2

3, Test Track 7, On-Site Supplier's Park [OSS]

TOYOTA KIRLOSKAR MOTOR 17

Award & Accolades

Mr. Mahesh Salkar, GM, TKM receiving the

18 TOYOTA KIRLOSKAR MOTOR

Deputy Managing Deputy Managing Deputy Managing

Business Planning and Customer Relations Quality Assurance

Conversion and Production

TOYOTA KIRLOSKAR MOTOR 19

TKM Vision and Mission

Vision • Touch the hearts of our customers by providing

Mission • Create an eco-friendly company in harmony with

20 TOYOTA KIRLOSKAR MOTOR

the whistle blower will be kept a emphasizes that all team

Mr. H Nakagawa Mr. Vikram Kirloskar

TOYOTA KIRLOSKAR MOTOR 21