New plants are a demonstration of Toyota’s commitment, and the Kirloskar Group’s stake in the JV will never get diluted, said the vice chairman.
17 Jan 2025 | 31910 Views | By Ketan Thakkar & Hormazd Sorabjee
“We are all in with Toyota. It is a 100-year plan,” said Manasi Kirloskar Tata, the Vice Chairman of Toyota Kirloskar Motor (TKM) and the daughter of Late Vikram Kirloskar, the promoter of Kirloskar Group. TKM is a joint venture between the over 130-year-old Kirloskar Group and the world’s largest ...
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“We are all in with Toyota. It is a 100-year plan,” said Manasi Kirloskar Tata, the Vice Chairman of Toyota Kirloskar Motor (TKM) and the daughter of Late Vikram Kirloskar, the promoter of Kirloskar Group. TKM is a joint venture between the over 130-year-old Kirloskar Group and the world’s largest carmaker, Toyota Motor Corporation.
The Japanese JV partner has unveiled its most ambitious investment plan, which involves investing over USD 3 billion (approximately Rs 26,000 crore) in the country, and the Kirloskar family is integral to the plans. “We are in it together, and our stake (11%) will remain at same level. We are also looking at expanding with the Toyota network. Wherever they require our support, we are there for them 110%,” said Manasi, who replaced Vikram Kirloskar on the TKM board after his sudden demise in 2023 and is becoming increasingly active in the company.
The Indian unit’s investment in a new plant in Chhatrapati Sambhaji Nagar, Maharashtra, is seen as a sign of Toyota’s commitment to India, that it is in it for the long run. TKM declared this investment shortly after announcing that it is setting up another factory in Bidadi, Karnataka, where it already has two units.
“If they weren’t in it for the long run, we wouldn’t have these expansions. We wouldn’t commit to an investment of Rs 20,000 crore and 850 acres of land. We’re also looking at exports from that region because of its geography, which is closer to the ports. So, for us, it’s growing in India, growing with India,” remarked Manasi.
India is Toyota’s fastest-growing market and among its most profitable manufacturing bases. The country has risen from outside the top 10 to its number 4 market as a rise in SUV sales in India has boosted the sales of Toyota models such as Innova.
Manasi said growing with India is the most important part of the expansion. “We’re making in India not only for India but also for the world,” she said. “Along with this Aurangabad (Chhatrapati Sambhaji Nagar) project, we’re also building a third plant in Bidadi. There can be no better demonstration of Toyota’s commitment to India.”
Since its establishment in 1997, the JV between Toyota and the Kirloskar family has grown into one of India’s most enduring auto industry alliances, combining Toyota’s expertise with Kirloskar’s understanding of the domestic market.
Manasi said the secret behind the successful alliance with Toyota is transparency and trust, and that she is proud of her late father’s powerful legacy. “My father started the company grounds up with Toyota, convincing them to come to India, working with them and really gaining their trust. My father was also a very transparent person. So, I think that those values shared between Toyota and him worked well together,” she said.
As Toyota grew, Kirloskar’s passion for developing globally competitive local suppliers stood out. He worked closely with the supplier network to enhance the manufacturing, just-in-time and logistics systems to meet Toyota’s standards. Moreover, as Toyota became more and more successful, he prioritised sharing that success with marginalised communities, ensuring inclusive growth.
“These are two or three values I would like to carry forward. The level of transparency needs to be at 110% at all times, and that’s what my mother and I are both conscious of. Increasing localisation and building capacity at our suppliers’ end is another priority. And, at the same time, we need to work on our CSR activities and towards building and developing communities around us,” she said.
A Strong Performer
TKM has consistently demonstrated strong financial performance, underpinned by a focus on quality, reliability and innovation. In 2024, the company achieved double-digit percentage growth in sales, driven by the success of models like the Innova Crysta, Fortuner and Urban Cruiser Hyryder. These vehicles have dominated their segments and have contributed significantly to Toyota’s global revenues.
With this, India’s role within Toyota’s global strategy has grown substantially, with the country now recognised as a key manufacturing and export hub. Strategic investments in capacity expansion and localisation support the plans.
Strategic Investments
Toyota’s $3 billion investment plan for India underscores its confidence in the market’s long-term potential. Key projects include investing in the third plant at Bidadi and the Chhatrapati Sambhaji Nagar factory.
Localisation is central to TKM’s strategy. Over 80% of components for several models are now sourced domestically. This has reduced costs, improved profitability and strengthened India’s supplier ecosystem. “Investing in local suppliers is not just about business efficiency; it’s about empowering India’s manufacturing ecosystem to compete globally,” Manasi said.
Sustainability
Manasi said TKM is committed to achieving carbon neutrality through its operations and product line-up. “A multi-pathway is the way forward,” said Manasi. The company will continue introducing hybrid and electric vehicles alongside other alternative fuel options.
Beyond financial and operational performance, TKM focuses on Corporate Social Responsibility (CSR) initiatives, addressing education, healthcare and skill development in marginalised communities. These programmes aim to uplift local populations while aligning with Toyota’s global philosophy of contributing to the society.