Toyota Plans Rs 20,000 Crore Investment in New Maharashtra Plant

Toyota Kirloskar Motor (TKM) has signed a memorandum of understanding (MoU) with the Maharashtra government to establish a new factory, with a proposed investment of around Rs 20,000 crore. The announcement was made on Wednesday, marking a significant development in Toyota's Indian operations.

The new greenfield manufacturing facility is likely to be situated in Chhatrapati Sambhaji Nagar. TKM stated that the investment, once finalised, is expected to be made over a multi-year period. The company believes this strategic location will enhance its ability to meet business and logistical requirements more efficiently, potentially serving wider markets within India and abroad.

Masakazu Yoshimura, Managing Director and Chief Executive Officer of TKM and Regional CEO at Toyota Motor Corporation (TMC), said, "Toyota Motor Corporation believes that India is well positioned to become a global manufacturing hub for cleaner and greener mobility solutions." He added that the MoU signing represents a pivotal point for the next phase of growth in the country.

This announcement follows TKM's previous investment plans. Last year, the company announced an investment of about Rs 3,300 crore for a new third plant at its Bidadi facility in Karnataka. This expansion aims to increase TKM's production capacity by 100,000 units annually and is expected to create over 2,000 direct jobs in Karnataka.

Eknath Shinde, Chief Minister of Maharashtra, commented on the project, stating, "Under the project, four-lakh electric and hybrid cars are expected to be manufactured every year with an investment of Rs 20,000 crore, generating 8,000 direct jobs and indirect employment for 8,000."

TKM reports that since beginning operations in India in 1999, it has invested more than Rs 16,000 crore, including investments by its group companies. The company claims to have created close to 86,000 jobs in its entire value chain, including supplier and dealer partners.