Mr. Shekar Viswanathan Deputy Managing Director (Commercial)

Toyota Kirloskar Motor November 23, 2009

Promoting EnvironmentFriendly Vehicles in IndiaPromoting EnvironmentPromoting Environment

Friendly Vehicles in IndiaFriendly Vehicles in India

22

Challenge for Indian SocietyChallenge for Indian Society

1. Concern over increase in pollution levels:

• Population pressure, urbanization & industrialization :causes of air pollution• CO2 level in atmosphere is continuously rising

Total CO2 emissions (Well to exhaust) on Indian roads

208 256391

721

1212

0

200

400

600

800

1000

1200

1400

2005 2008 2015 2025 2035

Millio

n ton

nes o

f CO2

• Toyota shares concern on increasing level of air pollutionSource : CSE, New Delhi

2. Growth of Auto Industry:

• Indian passenger car market has been growing at average of 8 per cent every year.

• Passenger car market expected to be around to 3.5 mn by 2015

Source : TKM Forecast

Indian Passenger Car Industry Forecast

675 707902 1061 1143

1379 1549 1553

3500

1770

0500

1000150020002500

30003500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2015(FY)

('000)

(Forecast)(Forecast)

Traffic CongestionTraffic CongestionEnvironmental issueEnvironmental issue AccidentsAccidents

Mobile private spaceMobile private spaceFreedomFreedom・・ConvenientConvenient Comfort Comfort ・・ ExcitingExciting

““ZeronizeZeronize”” and and ““MaximizeMaximize””

3. Actions of Toyota:

2. Product Initiative

1. Manufacturing Initiative1. Manufacturing Initiative

3. Community Initiative

Activities of Toyota in India

1. Manufacturing Initiative:

1. New compact car to be produced in brand new ‘Eco Plant’2. This plant to begin operations by the end of 2010

Location :Bangalore, KARNATAKA (adjacent to 1st plant)

Production capacity :70,000 per year (Ist phase)

Environment Friendly Plant:1. Production technology with lower CO2

emissions [20% reduction]2. Wastewater recycling systems3. Water based paints4. Zero landfill waste5. Plantation

1-a. Key Initiatives at TKM Plant:

a. Objective : To reduce Volatile Organic Compound [VOC] emissionsb. First in auto industry in Indiac. Eco friendly as compared solvent based paint

Reduction of VOC elements at TKM Plant

I. Water Based Paint

62.0950.52 46.77 45.21 44

20

0

10

20

30

40

50

60

70

FY05 FY06 FY07 FY08 FY09 FY10Year

gms

/ m

.sr

Plant-2gms

/ m2

1-b. Key Initiatives at TKM Plant:

II. Afforestation

a. Afforestation ceremony on 21 June 09b. 6000 participants planted 30,000 saplings in10,000 m2 area.c. Another 30000 saplings planted till Nov 09d. Plan to have 150,000 planted saplings by 2011

Afforestation at TKM Plant [‘000 Nos]

Mr. Nakagawa (MD-TKM) with Dr. Miyawaki - Emeritus Professor, Yokohama National University

6090

150

020406080

100120140160

2009 2010 2011

Year

No.

of S

aplin

gs [C

umul

ativ

e]

2. Product Initiative

Introduction of Innova CNG [Jan 2009]

Plan to introduce hybrid car in India [2010]

1. Toyota India is committed to environment protection in line with global Toyota initiative.

2. Has introduced Innova-CNG and plans to introduce hybrid car in India.

100

2065

20

120

185

0255075

100125150175200225250

FY 2007 FY 2008 FY 2009(Apr-Nov)

Year

No.

of S

tude

nts

020406080100120140160180200

3a. Community Initiative

TSEP program in session

I. Toyota Safety Education Program

a. More than 185000 children covered under TSEP till date [since 07]b. Objective - Following traffic rules to reduce congestion

35[Plan]

3b. Community Initiative (contd.)

Participation by local school children in

Environment day program [02-09]

II. ‘Greenathon’ Campaign

a. India’s first 365 eco-day initiative in collaboration with popular news channel & NGO

b. Adoption of one village by Toyota under ‘Light a Billion Lives’ initiative.

III. Local Environment Initiatives

a. Drawing and quiz competition onenvironment for local children every year

b. Zero Plastic campaign : Participation of300 team members in ’09 on voluntary basis

180 220 28

0 345

380

410 445 51

0

0

100

200

300

400

500

600

2002 2003 2004 2005 2006 2007 2008 2009

Year

No.

of S

tude

nts

Part

icip

ated

4. Focus Areas for Government Support:

1. Road Improvement to reduce environment impact:a. Better roads and improved traffic management

system to reduce congestion, CO2 and pollution b. Tree plantation for greener roads

2. Promotion of EFV’s

Government of India support for promotion of Hybrid

Vehicles and other EFV’s will be highly appreciated.

<Strong Government support for EFV’s in other countries>

i. Special Tax concession in ASEAN countries and Japan

ii. Special lanes for vehicles with over 45 mpg in California, U.S.A

Projected Vehicle Population in India

Source: Asian Development Bank

On - Road Vehicle Population

54.1 64121.3

246.1

372.7

0

50

100

150

200

250

300

350

400

2005 2006 2015 2025 2035

No

of V

ehic

les

in M

illio

ns

Government Auto Industry

TODAY for TOMORROWTODAY for TOMORROW