TKM (Toyota Kirloskar Motor Pvt. Ltd.) has emerged as one of India’s leading car manufacturers in recent times in terms of sales numbers. However, about a quarter of their sales come from badge-engineered products manufactured by Maruti Suzuki like the Glanza, urban cruiser Tasar and Rumion.
Toyota is keen to increase its total production capacity to boost its domestic sales and then lay the foundation for stronger export operations in the future. Toward that end, according to Nikkei, Toyota is working on opening three new assembly plants in the state of Maharashtra with an investment of US$1.9 billion. let’s take a closer look.
3 new Toyota plants
By the end of 2030, Toyota aims to set up three new production facilities in the state of Maharashtra, one of the industrial hubs of India’s automotive industry. When these three new facilities become operational it will allow TKM to almost triple its current production output.
The target is to produce around 1 million vehicles per year from all Indian facilities by the end of 2030. To rapidly ensure this goal, Toyota is estimated to invest around JPY 300 billion, which is approximately USD 1.9 billion or Rs 18,103 crore.
Currently, TKM operates three production facilities at Bidadi, near Bengaluru in the state of Karnataka. These facilities are primarily focused on the domestic market with an emphasis on self-charging hybrid vehicles. The upcoming facilities in Maharashtra will not only cater to the domestic market, but they will also cater to exports, thereby establishing India as a manufacturing hub.
India will be the fourth major car production center for Toyota
Toyota is a global giant and has an unforgettable presence in major markets across the world. In Japan, Toyota’s production capacity is about 3.1 million units per year, in China 2.2 million units and in the USA 1.5 million units. With these three new facilities in Maharashtra, Toyota’s production capacity in India is estimated to reach 1 million units, making India Toyota’s fourth major car production hub.
At the time of writing this article, Toyota says they have not yet made any decisions on building the new factory. Instead, Toyota is reviewing production arrangements by working in partnership with regional players.
