BANGALORE: Japanese carmaker Toyota is investing Rs 3,300 crore for a new factory in India, which will take its cumulative investments in the country to nearly Rs 20,000 crore and add a fresh one lakh capacity to its production by 2026.
The company joins compatriot Maruti Suzuki, Korean siblings Hyundai and Kia, and locals Mahindra & Mahindra and Tata Motors in pumping in fresh investments to boost India capacity.While Maruti is investing Rs 50,000 crore by 2030-31, Hyundai will be investing over Rs 20,000 crore over the next decade. Mahindra & Mahindra is investing Rs 10,000 crore for an electric vehicle plant, while Tata Motors will pump in around Rs 24,000 crore by 2027.
Toyota, which also partners Maruti Suzuki in India as part of a larger agreement with the latter’s parent Suzuki, has been struggling to meet demand in the market despite starting a third shift this year. There is already a waiting period in excess of one year on variants of certain models such as the Innova Hycross MPV. The shortage has also seen the company halt bookings for the top-end variant of the Hycross, and the CNG version of the Rumion CNG.
The new plant, the third for the company’s local joint venture Toyota Kirloskar Motor (TKM), will also come up in Karnataka at its existing manufacturing location outside Bangalore. The company currently has a capacity to produce 3.42 lakh units, with which it is catering to demand for its self-badged cars and also the Suzuki cross-badged ones such as Invicto (Hycross twin) and Grand Vitara (Hyryder twin).
Masahiko Maeda, CEO of Toyota’s Asia Region, said the Indian market holds great importance for the company and the new investments will strengthen the country’s share in its global vision. TKM MD & CEO Masakazu Yoshimura said the new investments will help in creating an additional 2,000 new jobs and expand adoption of advanced clean technologies. “We will continue to work together with the government to develop a world-class local ecosystem that promotes the best solutions for India by focusing on improving energy security, promoting economic growth and achieving Carbon Neutrality.”
Toyota and its group of companies have already invested Rs 16,000 crore in India over the last 25 years. Last year, TKM and Toyota Kirloskar Auto Parts (TKAP) had signed a Memorandum of Understanding (MoU) with the Karnataka government to invest Rs 4,100 crore aimed at making deeper cuts in CO2 emissions and enhance electrification and fast pace shift towards greener technologies.
The new investment comes after a period of 13 years when the company had set up a second plant in Karnataka in 2010 where it now makes models like Camry Hybrid, Hyryder, and Hilux. The company’s first plant, which production in October 1997, makes the HyCross, Innova Crysta, Fortuner, and Legender.
Vikram Gulati, VP (Corporate Affairs and Governance) said the company is bullish on the sales prospects in India, and has been localising its supplier base in the country.
Atul Sood, TKM VP for Sales and Strategic Marketing, said the company has sold 1.83 lakh units in the January-October’23 period, and this gives a year-on-year growth of 33%. “We are witnessing strong demand for our products and will be closing the year with record sales.”
The company joins compatriot Maruti Suzuki, Korean siblings Hyundai and Kia, and locals Mahindra & Mahindra and Tata Motors in pumping in fresh investments to boost India capacity.While Maruti is investing Rs 50,000 crore by 2030-31, Hyundai will be investing over Rs 20,000 crore over the next decade. Mahindra & Mahindra is investing Rs 10,000 crore for an electric vehicle plant, while Tata Motors will pump in around Rs 24,000 crore by 2027.
Toyota, which also partners Maruti Suzuki in India as part of a larger agreement with the latter’s parent Suzuki, has been struggling to meet demand in the market despite starting a third shift this year. There is already a waiting period in excess of one year on variants of certain models such as the Innova Hycross MPV. The shortage has also seen the company halt bookings for the top-end variant of the Hycross, and the CNG version of the Rumion CNG.
The new plant, the third for the company’s local joint venture Toyota Kirloskar Motor (TKM), will also come up in Karnataka at its existing manufacturing location outside Bangalore. The company currently has a capacity to produce 3.42 lakh units, with which it is catering to demand for its self-badged cars and also the Suzuki cross-badged ones such as Invicto (Hycross twin) and Grand Vitara (Hyryder twin).
Masahiko Maeda, CEO of Toyota’s Asia Region, said the Indian market holds great importance for the company and the new investments will strengthen the country’s share in its global vision. TKM MD & CEO Masakazu Yoshimura said the new investments will help in creating an additional 2,000 new jobs and expand adoption of advanced clean technologies. “We will continue to work together with the government to develop a world-class local ecosystem that promotes the best solutions for India by focusing on improving energy security, promoting economic growth and achieving Carbon Neutrality.”
Toyota and its group of companies have already invested Rs 16,000 crore in India over the last 25 years. Last year, TKM and Toyota Kirloskar Auto Parts (TKAP) had signed a Memorandum of Understanding (MoU) with the Karnataka government to invest Rs 4,100 crore aimed at making deeper cuts in CO2 emissions and enhance electrification and fast pace shift towards greener technologies.
The new investment comes after a period of 13 years when the company had set up a second plant in Karnataka in 2010 where it now makes models like Camry Hybrid, Hyryder, and Hilux. The company’s first plant, which production in October 1997, makes the HyCross, Innova Crysta, Fortuner, and Legender.
Vikram Gulati, VP (Corporate Affairs and Governance) said the company is bullish on the sales prospects in India, and has been localising its supplier base in the country.
Atul Sood, TKM VP for Sales and Strategic Marketing, said the company has sold 1.83 lakh units in the January-October’23 period, and this gives a year-on-year growth of 33%. “We are witnessing strong demand for our products and will be closing the year with record sales.”