The proposed investment, once finalized, is expected to be made over a multi-year period, potentially contributing to substantial job creation and economic growth in the region
31 Jul 2024 | 8767 Views | By Autocar Pro News Desk
Toyota Kirloskar Motor said it has decided to explore the construction of a car manufacturing plant at Chhatrapati Sambhaji Nagar, popularly known as Aurangabad.
The company called the proposal for the new facility "a testament to" its "strong commitment to India".
"Under the MOU, TKM is considering a significant ...
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Toyota Kirloskar Motor said it has decided to explore the construction of a car manufacturing plant at Chhatrapati Sambhaji Nagar, popularly known as Aurangabad.
The company called the proposal for the new facility "a testament to" its "strong commitment to India".
"Under the MOU, TKM is considering a significant investment for setting up a Greenfield Manufacturing Facility that will further strengthen the company's focus on advanced green technologies along with quality products and services. The proposed investment, once finalized, is expected to be made over a multi-year period, potentially contributing to substantial job creation and economic growth in the region," it said.
The strategic location is likely to enhance TKM's ability to meet business and logistical requirements more efficiently, allowing the company to serve wider markets within the country and abroad thereby offering significant advantage and growth opportunities, it added.
The Karnataka-based company already has a world-class manufacturing set-up with two state-of-the-art units located at Bidadi in Karnataka.
However, the company has now signed a memorandum of understanding with the Government of Maharashtra to explore the setting up of a new facility.
"Since the commencement of its operations in 1999, India has been growing in importance and has now become a vital market for Toyota globally," said Toyota Kirloskar Motor, a subsidiary of Japan-based Toyota Motor Corporation.
"The company has been working extensively to expand its operations in alignment with key national priorities of skill enhancement, localization and development of the local ecosystem," it added.
“Toyota Motor Corporation believes that India is well positioned to become a global manufacturing hub for cleaner and greener mobility solutions," the company quoted Masakazu Yoshimura, MD and CEO of Toyota Kirloskar Motor and Regional CEO at Toyota Motor Corporation (TMC), as saying. "This belief was reinforced with the recent regional restructuring which elevated India to play central role by being integrated into the Middle East, East Asia & Oceania Region and acting as the hub of the new “India, Middle East, East Asia & Oceania Region”. Today’s MOU signing marks a pivotal point as we stride into the next phase of growth in the country enabling us to contribute to enriching lives with qualitative mobility solutions locally and globally.”
Speaking of the new MOU event, Mr. Swapnesh Maru, Deputy Managing Director, TKM said “The State of Karnataka has helped us to firmly establish ourselves as a tested base for manufacturing excellence. Proposal for the Green Field Manufacturing Facility at Chhatrapati Sambhaji Nagar continues our commitment to advancing sustainable mobility in India. This will act as a tipping point to unlock the potential of Marathwada region, unleashing its entrepreneurial capabilities and providing new age skills to its youth so as to bring Marathwada as a key contributor to Maharashtra’s growth.”
Even as it announced the latest move, it again thanked Government of India and the state of Karnataka. "Over the past 25 years, Toyota has well established itself as a model company for innovation and manufacturing practices leading to large scale economic and social development of the region," it said.
At present, TKM already has a manufacturing base in India. The company has two plants located in Bidadi with an annual installed capacity of 3.42 lakh vehicles/year employing over 6000 people.
Toyota Kirloskar Motor said it, along with group companies, has invested more than Rs 16,000 crores and created close to 86,000 jobs in the entire value chain (including supplier and dealer partners).
Toyota’s cumulative exports from India stand at Rs 32,000 crores thus representing the company's export focus. The company has also made a difference to over 2.3 million lives by championing various social cause aimed at enhancing quality of life at grassroot level.
In 2023, TKM announced fresh investments of about Rs. 3,300 crores for a new 3rd plant in Bidadi facility. This expansion, aimed at contributing to Make-in-India, increases TKM’s production capacity by 100,000 units, annually thus further adding to the growth of local ecosystem of suppliers and job creation of over 2000 direct employment in state of Karnataka. With this third plant expansion going mainstream in 2026, TKM’s annual production capacity at Bidadi is expected to be augmented to 4.42 lakh annually.
Prior to this in the year 2022, Toyota Group of companies that constitutes of Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts (TKAP) had signed and announced their Memorandum of Understanding (MOU) with the Government of Karnataka to invest INR 4,100 crores aimed at making deeper cuts in CO2 emissions and enhance electrification and fast pace shift towards greener technologies.