Toyota India Plots Fourth Vehicle Manufacturing Plant In Maharashtra, Signs MoU

In a big boost for the state of Maharashtra, Toyota India has signed a Memorandum of Understanding (MoU) to explore the setting up of a new vehicle manufacturing facility with the state government. Plotting what will be its fourth facility in the country – and its first outside of Karnataka – Toyota Kirloskar Motor (TKM) is set to push its cumulative vehicle production capacity to well over five lakh vehicles annually, if the proposed fourth plant in Maharashtra materialises. The MoU was signed in the presence of Maharashtra CM Eknath Shinde, Deputy CMs Devendra Fadnavis and Ajit Pawar, and TKM MD and CEO Masakazu Yoshimura.

Also Read: Toyota Urban Cruiser Taisor: 3 Reasons To Buy And 3 Reasons To Avoid

Fadnavis, in a social media post, revealed Toyota is planning to invest Rs 20,000 crore into the setting up of the plant, which is proposed to be constructed in Chhatrapati Sambhaji Nagar’s AURIC region over 850 acres of land. This plant, if it materialises, will generate up to 8,000 direct jobs and 12,000 indirect jobs, Fadnavis mentioned in his post. The new facility will ‘strengthen the company's focus on advanced green technologies along with quality products and services’, a press statement from Toyota read.

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’, the statement added.

At present, TKM has two plants located in Bidadi, Karnataka, with an annual installed capacity of 3.42 lakh vehicles a year, employing over 6,000 people. Last year, TKM announced a fresh investment of Rs. 3,300 crore for a third plant in Bidadi. This expansion will increase TKM’s production capacity by another 1 lakh units, so when it goes live in 2026, it will boost TKM’s annual production capacity to 4.42 lakh vehicles. With a fourth plant, TKM’s annual capacity will soar to well over 5 lakh vehicles.

Also Read: Toyota India Reports Highest-Ever Monthly Sales In June 2024

“Toyota Motor Corporation believes that India is well positioned to become a global manufacturing hub for cleaner and greener mobility solutions. This belief was reinforced with the recent regional restructuring which elevated India to play a 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”, said Yoshimura on the occasion.

Toyota India’s current portfolio comprises 12 models, including four resulting from its alliance with Suzuki. In 2025, Toyota is expected to roll out its first all-electric model, which will be based on the Maruti Suzuki EVX.