Toyota Kirloskar Motor invests Rs 3,300 crore in Karnataka

The Karnataka government has cemented its commitment to fostering economic growth and sustainable mobility by signing a Memorandum of Understanding (MoU) with Toyota Kirloskar Motor (TKM), an Indian subsidiary of Japan’s Toyota Motor Corporation. This landmark agreement, inked on November 21, paves the way for an additional investment of Rs 3,300 crore by TKM to expand its car manufacturing facility in Bidadi, Karnataka.

According to the terms of the MoU, TKM will establish its third manufacturing facility with a capacity of 1 lakh units at Bidadi, approximately 35 km from Bengaluru. This expansion is expected to generate employment for up to 2,000 people. The new unit, scheduled to commence production by 2026, will have an annual capacity of 1 lakh units in two shifts. It will be integrated into the existing facility at Bidadi, where TKM currently operates two units with a combined installed production capacity of up to 3.42 lakh units annually.

The new plant, while continuing to produce the popular multi-utility vehicle Innova HyCross, will position itself as “future-ready.” TKM Executive Vice President & Country Head Vikram Gulati highlighted that the facility would be equipped to roll out models across different fuel technologies, aligning with the evolving landscape of the automotive industry.

Karnataka Chief Minister Siddaramaiah expressed satisfaction with Toyota’s continued investments in the state, citing it as a testament to Karnataka’s consistent attractiveness as a business destination. Minister for Large and Medium Industries MB Patil emphasized Karnataka’s leadership in the electric vehicle (EV) space, with a dedicated EV policy in place since 2017 and a new clean mobility policy aimed at attracting Rs 50,000 crore in investments across the entire EV value chain.

TKM Managing Director and CEO Masakazu Yoshimura underscored Toyota’s commitment to being a “future-ready mobility company.” He expressed confidence that the MoU with the Karnataka government would contribute to employment generation and the adoption of advanced clean technologies. Yoshimura affirmed TKM’s dedication to collaborating with the government to develop a world-class local system focused on improving energy security, promoting economic growth, and achieving carbon neutrality.

Toyota CEO Asia Region Masahiko Maeda emphasized the significance of the Indian market for the company. He expressed confidence that the new investments in India would elevate TKM’s role in Toyota’s global vision for a promising future, creating sustainable mobility solutions that enrich people’s lives worldwide.

It is worth noting that this is not Toyota’s first significant investment in Karnataka. Last year, Toyota group firms, including TKM, committed to investing Rs 4,100 crore to enhance electrification and address the fast-paced shift towards greener technologies. Toyota’s total investments in India now stand at Rs 16,000 crore, reflecting its enduring commitment to the country’s economic and environmental goals.

The MoU between the Karnataka government and Toyota Kirloskar Motor marks a significant milestone in the state’s journey towards becoming a hub for sustainable mobility. The expansion of TKM’s manufacturing facility aligns with the government’s vision for a comprehensive and supportive electric vehicle ecosystem, emphasizing Karnataka’s role as a leader in attracting investments and shaping the future of mobility in India.

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