Toyota to set up its third plant in Karnataka, production to commence in 2026

Toyota to set up its third plant in Karnataka, production to commence in 2026

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Toyota has further stated that it will invest about ₹3,300 crore for building the new production facility in Karnataka, which will be its third in India. Also, this plant is claimed to create employment opportunities for approximately 2,000 people. The Japanese car manufacturer has claimed that the decision to set up the new manufacturing facility comes as part of the auto company’s strategy to increase local production in India. The company currently operates two plants in India with a total production capacity of around 3.42 lakh units per annum. The automaker has planned two shifts for the new plant that can be scaled up with a third shift if and when needed. Currently, the two production facilities of the automaker are working three shifts to cater to pending orders.

Watch: Toyota Innova HyCross: First Drive Impressions

Speaking about the new production facility, Masahiko Maeda, Chief Operating Officer of Asia region for the carmaker, said that the Indian market has always been of great importance to the company. He also said that Toyota is hopeful that this new production facility will further elevate the automaker’s ambition to grow in the Indian market and globally. He also hinted that the new plant will play a crucial role in the brand’s strategy to make greener powertrain-equipped cars.

TKM started operations at its first plant in India in December 1999, which currently manufactures models like Innova Hycross, Innova Crysta, Fortuner and Legender. This facility has an installed production capacity of 1.32 lakh units every year. The second plant of the automaker is located at the same site and started production in December 2010. This facility has an annual production capacity of 2.10 lakh units and it rolls out models like Camry Hybrid, Urban Cruiser Hyryder and Hilux. TKM also sells models like Glanza and Rumion in India, which are sourced from Maruti Suzuki as part of the global collaboration between Suzuki and Toyota. The automaker also imports the Vellfire and LC 300 models to India as Completely Built Units (CBU).

First Published Date: 21 Nov 2023, 19:03 PM IST


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Toyota plans to boost production in India, plans third facility to meet demands

Toyota plans to boost production in India, plans third facility to meet demands

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Toyota Motor plans to increase its production capacity in India amid rising demands and long waiting period for its vehicles. The Japanese auto giant has started to enhance manufacturing capacity with two plants located at Bidadi, Karnataka, running at full capacity. Toyota made the announcement during the ongoing Japan Auto Show in Tokyo, saying that demands for its cars, especially in the high-end category, has seen a jump post Covid pandemic in India.

By: HT Auto Desk
| Updated on: 26 Oct 2023, 14:35 PM

Workers make checks at a trim inspection line on the Innova Crysta compact multi-purpose vehicle (MPV) production line at the Toyota Kirloskar Motor plant in Bidadi, Karnataka. (Bloomberg)

Yoichi Miyazaki, Executive Vice President and Board Member at Toyota Motor Corporation, said the company is reaching full plant capacity utilisation in India. Toyota, which operates jointly with Bengaluru-based Kirloskar Group in India, uses two of its facilities in Karnataka. The two plants have an overall production capacity of 3.42 lakh units per year.

Miyazaki said, “We have started a discussion (on the matter). After Covid, the market recovery is very strong (in India) in comparison to other countries so we believe demand itself is very strong in India.” Toyota is also planning a third facility in India to address rising demands and long waiting periods on its models. Miyazaki said demands for bigger cars in India is seen as a good sign by the Japanese auto giant. “With the strength of higher segments going up in the Indian market, it tells us it is now Toyota’s time,” he said.

Watch: Toyota Innova HyCross First Drive Impressions

Toyota sells Fortuner and Fortuner Legender SUVs, Innova Crysta, Innova HyCross and Rumion MPVs, Urban Cruiser HyRyder SUV, Camry Hybrid sedan, Hilux pickup truck and Glanza hatchback in India. All eight models are manufactured at its facility in Karnataka. Part of the facility is also utilised to manufacture vehicles jointly developed with its India partner Maruti Suzuki, like Grand Vitara SUV.

Toyota had recently started a third shift at its Bidadi facility to increase output capacity by nearly 30 per cent. It also invested more than ₹90 crore to upgrade infrastructure and employed 1,500 additional workers to help bring down waiting period for its cars. Toyota has seen its sales jump by 35 per cent between April and September this year with nearly 1.24 lakh vehicles sold.

First Published Date: 26 Oct 2023, 14:35 PM IST


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