Toyota plans to bolster presence in India

22 Nov 2023 , 11:30 AM

Toyota Motor Corp. of Japan would spend Rs3300 crore in India to develop its third manufacturing plant in order to fulfill solid demand for its existing vehicles while also being future-ready for creating clean technology automobiles.

The expansion will highlight Toyota Kirloskar Motor’s (TKM) 25th year of operations in India and bring the company’s total investment in the nation to Rs 19,300 crore, top executives at TKM stated during a ceremony at its site in Bidadi, near Bengaluru.

TKM inked a memorandum of understanding with the Karnataka government on Tuesday to make a new investment in the facility with a capacity of 100,000 units per year. According to the sources, the new factory would be developed within its current site in Bidadi and will employ 2,000 people directly.

Apart from the newest Innova HyCross model, the new factory will also produce subsequent models with a diverse engine mix. Toyota declined to comment on its future manufacturing intentions.

This is Toyota’s first big step in the Indian market, in roughly 15 years. Customers have been waiting up to a year for some of the automaker’s best-selling models, such as the Innova Hycross (hybrid).

Other models, such as the Urban Cruiser Hyryder, Innova Crysta, and certain imported models, have three to six-month wait times due to a significant shift in demand for SUVs.

With the next facility set to open in 2026, the expansion is unlikely to solve the long wait for some of the company’s models anytime soon. Its existing factories, which manufacture the Hyryder, Innova Crysta, Hycross, and Fortuner, among other models, are now at full capacity.

For feedback and suggestions, write to us at [e-mail]