Jaipur, Dec. 3: Toyota Kirloskar Motor Pvt Ltd (TKMPL) is bracing for a drop in production and capacity utilisation at its second plant in Bidadi, Karnataka, following the government's demonetisation drive.

"The capacity at the first plant, which manufactures the Innova Crysta and the Fortuner, is fully utilised at 1 lakh units per annum. I don't think we will see any drop in production there as we have two months' waiting for these vehicles. But the second plant that makes the Etios Liva and the Etios may see a drop in production in December," said N. Raja, senior vice-president, director, marketing, TKMPL.

The second plant, which has an installed capacity of 2,10, 000 units per annum, sees a capacity utilisation of 55 per cent in normal times. Raja's prediction is based on the drop in enquiries after demonetisation.

"Though we work on a 15 day inventory that will see us through November, we will feel the heat in December. We have seen a 30 per cent drop in walk-ins and a 15-20 per cent drop in enquiries at our dealerships," he said.

He was speaking at an environment seminar organised by the company in Jaipur recently.

The company showcased the new fourth generation Prius at the event.