Toyota Kirloskar Motor's New Manufacturing Facility in Maharashtra
Toyota Kirloskar Motor on 31st July 2024 signed a Memorandum of Understanding (MOU) with the Maharashtra government to look into the setting up of a Green Field Manufacturing Facility at Chhatrapati Sambhaji Nagar, reaffirming a strong commitment to India. It is reportedly located in Karnataka, TKM already has two innovative facilities and a top-notch manufacturing system, situated near Bidadi and geared to support and bolster India's standing in the global auto industry setting.
TKM's headquarters are in Karnataka, where they already have two advanced manufacturing units in Bidadi. These facilities have helped strengthen India's position in the global automobile industry. The MOU was exchanged between Dr. Harshadeep Kamble, Principal Secretary (Industries), Government of Maharashtra, and Mr. Sudeep Santram Dalvi, Director and Chief Communications Officer of TKM. Key dignitaries, including Chief Minister Eknath Shinde, Deputy Chief Ministers Devendra Fadnavis and Ajit Pawar, and senior executives from TKM, including MD and CEO Masakazu Yoshimura and Vice Chairperson Manasi Tata attended the event.
Toyota started its operations in India in 1999 and has since become an important market for the company globally. Operating under the values of "Grow India - Grow with India," TKM has worked to expand its operations in line with national priorities like skill enhancement, localization, and ecosystem development. The support from the Government of India and the state of Karnataka has been crucial in Toyota's growth. Over the past 25 years, Toyota has invested over INR 16,000 crores in Karnataka, creating around 86,000 jobs in the entire value chain, including suppliers and dealers. Toyota's export contributions stand at approximately INR 32,000 crores, highlighting the company's focus on global markets. Through various social initiatives, Toyota has positively impacted over 2.3 million lives, improving the quality of life at the grassroots level.
The proposed new facility in Maharashtra is part of TKM's expanding product portfolio and growing consumer demand for world-class products. The new facility is expected to focus on advanced green technologies, quality products, and services. Once finalized, the investment will be made over several years, potentially creating substantial job opportunities and economic growth in the region. The strategic location of the new facility will help TKM meet business and logistical requirements more efficiently, allowing the company to serve wider markets within the country and abroad.
Masakazu Yoshimura, MD and CEO of TKM emphasized that India is well-positioned to become a global manufacturing hub for cleaner and greener mobility solutions. The recent regional restructuring at Toyota Motor Corporation has elevated India's role in the Middle East, East Asia, and Oceania region. This MOU marks a significant step in TKM's growth in India, contributing to enriching lives with quality mobility solutions locally and globally.
Vice Chairperson Manasi Tata highlighted the 25 years of operational excellence at TKM's Bidadi plant as the foundation for Toyota's future direction in India. The strategic focus on "Make in India" and "Skill India" will enable sustainable, long-term growth, offering cleaner and greener mobility solutions to customers and supporting the Government’s roadmap of "Viksit Bharat 2047."
Deputy Managing Director Swapnesh Maru noted that Karnataka has helped establish TKM as a base for manufacturing excellence. The proposed Green Field Manufacturing Facility in Maharashtra will continue TKM's commitment to advancing sustainable mobility in India. This facility will unlock the potential of the Marathwada region, fostering entrepreneurial capabilities and providing new-age skills to the youth.
TKM already has a strong manufacturing base in India, with two plants in Bidadi that have an annual installed capacity of 3.42 lakh vehicles and employ over 6,000 people. Operations at these plants follow the Toyota Environmental Challenge (TEC) 2050, aiming for a greener future and carbon neutrality. The facility also includes over 200 suppliers dedicated to making high-quality cars that bring happiness to all.
In 2023, TKM announced a new investment of about Rs. 3,300 crores for a third plant in Bidadi, increasing production capacity by 100,000 units annually and creating over 2,000 direct jobs in Karnataka. With this expansion, TKM's annual production capacity at Bidadi is expected to reach 4.42 lakh units by 2026. In 2022, Toyota Group companies signed an MOU with the Government of Karnataka to invest INR 4,100 crores to reduce CO2 emissions and enhance electrification and greener technologies.
In Summary, Toyota Kirloskar Motor's new MOU with the Government of Maharashtra marks a significant step in the company's commitment to India. The proposed Green Field Manufacturing Facility in Chhatrapati Sambhaji Nagar aims to boost local employment, economic growth, and sustainable mobility. With a strong manufacturing base and ongoing investments, TKM plays a pivotal role in India's automotive industry, contributing to a greener and more prosperous future.
Also Read: