Toyota invests Rs 3,300 crore for Karnataka Plant Expansion

In a significant development for the Indian automotive industry, Toyota has unveiled plans to bolster its manufacturing footprint in the country with the announcement of a new plant in Bidadi, Karnataka. The Memorandum of Understanding (MoU) signed between Toyota and the Karnataka government outlines a strategic move that is poised to mark a significant milestone for the automaker in its 25th year in India.

This bold initiative demands an investment of Rs 3,300 crores, creating 2,000 jobs. This not only reinforces Toyota’s commitment to the ‘Make-in-India’ initiative but also highlights the brand’s dedication to contributing to the local ecosystem and promoting economic growth.

The upcoming manufacturing facility, scheduled to be operational by 2026, is set to play a crucial role in augmenting Toyota’s production capacity by 1 lakh units annually. This expansion is anticipated to significantly boost Toyota’s current output of around 400,000 units annually from its two existing Bidadi plants.

The upcoming facility will be the main production hub for a forthcoming three-row SUV, known as the 340D. This extended version of the overseas Corolla Cross is expected to be released by 2026, with an annual production goal of 60,000 units. The India-specific SUV, based on the Corolla Cross, will leverage Toyota’s TNGA-C platform, shared with the Innova Hycross.

Notable enhancements to the SUV’s interior and exterior are expected, including a revamped nose, new soft parts, and a completely redesigned rear end. The extended waiting period for the SUV variant is attributed to the global semiconductor shortage, impacting deliveries of higher-end variants despite Toyota’s production ramp-up efforts.

The debut of Toyota’s IMV 0 ladder-frame platform at the Japan Mobility Show suggests the arrival of budget-friendly options for vehicles such as the Hilux pickup truck and Fortuner SUV in India.However, details about the specific plant for producing models based on this platform remain undisclosed.

This substantial investment of Rs 3,300 crore underscores Toyota’s commitment to fostering advanced clean technologies and promoting economic growth in India. The announcement of the new manufacturing plant aligns seamlessly with Toyota’s dedication to ‘Make-in-India,’ showcasing the brand’s commitment to contributing to the local ecosystem.

Though the new plant is set to reduce waiting times for popular models like the Innova Hycross hybrid MPV, customers might still face extended wait periods until the facility becomes operational in 2026. Toyota’s total investments in India, surpassing Rs 16,000 crore, have not only generated jobs but also highlight the brand’s substantial contributions to the Indian automotive sector. This strategic initiative by Toyota marks a fresh chapter in its growth narrative in India, promising economic development, technological progress, and a varied range of high-quality vehicles for Indian consumers.