Toyota Kirloskar Motor (TKM), a prominent player in the automotive sector, is set to embark on a significant expansion near Bengaluru by establishing its third plant. This strategic move involves a substantial investment of approximately Rs 3,300 crore, reflecting the company’s commitment to furthering its presence in India. With a manufacturing legacy spanning 25 years, TKM has been a key contributor to the country’s automotive landscape.
The new plant, slated for completion by 2026, aims to enhance TKM’s production capacity by an additional one lakh units annually. This expansion aligns with TKM’s focus on incorporating advanced clean technologies, contributing to a sustainable and eco-friendly manufacturing ecosystem. Such a move not only reflects the brand’s commitment to innovation but also positions it as a forward-thinking and future-ready mobility company.
In a recent statement, TKM highlighted its signing of a Memorandum of Understanding (MoU) with the Karnataka state government to augment its existing operations. The agreement underscores TKM’s collaborative approach with local authorities to foster economic development and technological advancements. The company envisions that these plans will not only bolster the local manufacturing ecosystem but also usher in new technologies, marking a transformative phase for the automotive industry in the region.
Furthermore, the expansion initiative is expected to generate approximately 2,000 new employment opportunities, contributing to the socio-economic development of the region. This move reflects TKM’s commitment not only to technological advancement but also to creating substantial job opportunities, a crucial aspect of corporate social responsibility.
TKM’s Managing Director and CEO, Masakazu Yoshimura, emphasized the company’s role as a future-ready mobility enterprise. He expressed confidence that the MoU with the Karnataka state government would significantly contribute to employment generation and facilitate the adoption of advanced clean technologies.
The strategic importance of Karnataka in shaping the future of mobility was highlighted by M B Patil, Minister for Large and Medium Industries and Infrastructure Development, Government of Karnataka. He emphasized Karnataka’s leadership in attracting investments in the electric vehicle (EV) sector, with a dedicated EV policy in place since 2017. This policy, updated in 2021, has positioned Karnataka as a frontrunner in securing investments totaling Rs 25,000 crore across the entire EV value chain. The state has witnessed substantial EV registrations, reinforcing its commitment to reshaping the mobility landscape.
This expansion comes on the heels of a pivotal move last year when the Toyota Group of companies, including Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts (TKAP), signed an MoU with the Karnataka government. This significant investment of Rs 4,100 crore aimed at making profound strides in reducing CO2 emissions, promoting electrification, and accelerating the adoption of greener technologies.
Over the past quarter-century, Toyota has emerged as a stalwart investor in India, injecting more than Rs 16,000 crore into the country. The cumulative impact of Toyota’s investments extends beyond monetary figures, creating a ripple effect in the job market. The company has played a pivotal role in generating close to 88,000 jobs throughout the value chain, including suppliers and dealer partners.
Toyota’s commitment is not limited to financial contributions but extends to its cumulative export contributions, which stand at an impressive Rs 30,000 crore. The automaker has consistently demonstrated its dedication to the Indian market, evident in the sale of over 2.3 million units of vehicles, solidifying its position as a key player in the country’s automotive sector.
In summary, Toyota Kirloskar Motor’s expansion plans underscore its long-term vision, aligning with India’s growth trajectory and commitment to sustainability. The strategic investment is poised to not only boost manufacturing capabilities but also contribute to job creation, technological innovation, and the overall advancement of the automotive industry in the region.
