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Toyota to open third plant in Karnataka, aims to produce 1 lakh units annually
Toyota's new plant in Bidadi to be future ready for different fuel technologies
Toyota Kirloskar is set to open a third manufacturing facility in Bidadi city, Karnataka, with a planned investment of ₹3,300 crore. The new plant, scheduled to commence operations in 2026, aims to produce 1 lakh units annually through two shifts.
The automaker, already operating a production unit in Bidadi, where 3.42 lakh units are manufactured yearly, anticipates significant employment generation, with claims of providing opportunities for around 2,000 people.
Toyota's strategic move focuses on bolstering local production in India, and the plant will initially operate in two shifts, with flexibility for a third shift if required.
The new plant, apart from producing multi-utility vehicle Innova HyCross, will be "future ready" to roll out models spanning across different fuel technologies, Toyota Kirloskar Motor (TKM) executive vice president & country head Vikram Gulati told PTI.
"I believe, we are as a company future-ready, both in terms of access to technology, access to well-accepted products across various powertrains as also access to the ability to bring these products to market," he said.
He added that within the industry, the preparation needed to introduce various powertrains on the same line, or even multiple lines, is a relatively swift process.
"It does take a bit of doing but it's not really a huge barrier, in my opinion. So that that makes us ready and flexible in terms of any of the powertrains going forward. And I'm sure the new plant is going to be much more advanced and much more future ready," Gulati said when asked if the third plant will have the provision for producing new technology vehicles such as electric vehicles.
He, however, said it is too early to give any specifics.
The ripple effect of this expansion is not only felt in enhanced production capabilities but also in employment opportunities. Toyota projects the creation of around 2,000 jobs, injecting vitality into the local economy.
Despite strong demand for Toyota cars, the company faces challenges in meeting customer orders, evident in waiting periods ranging from 4 to 18 months. The October 2023 sales of 20,542 vehicles, a decline from September's 22,168 units, underlines the supply-demand gap.
(Inputs from PTI)
