Toyota to invest ₹20,000 crore in Maharashtra, enhance production capabilities

In a significant development, Toyota Kirloskar Motor (TKM) India on Wednesday said, it has signed a memorandum of understanding (MoU) with the Maharashtra government to set up a new factory, with an investment of around ₹.20,000 crore.

The proposed investment, once finalised, is expected to be made over a multi-year period, potentially contributing to substantial job creation and economic growth in the region, the company said in a statement adding that the greenfield manufacturing facility is likely to come up at Chhatrapati Sambhaji Nagar.

The strategic location is likely to enhance TKM’s ability to meet business and logistical requirements more efficiently, allowing the company to serve wider markets within the country and abroad thereby offering significant advantage and growth opportunities, it said.

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“Toyota Motor Corporation believes that India is well positioned to become a global manufacturing hub for cleaner and greener mobility solutions. This belief was reinforced with the recent regional restructuring which elevated India to play central role by being integrated into the Middle East, East Asia and Oceania Region and acting as the hub of the new “India, Middle East, East Asia & Oceania Region”,” Masakazu Yoshimura, Managing Director and Chief Executive Officer of TKM and Regional CEO at Toyota Motor Corporation (TMC) said.

Shift towards greener technologies

The MoU signing marks a pivotal point for the next phase of growth in the country with qualitative mobility solutions locally and globally, he said.

Last year, TKM announced fresh investments of about ₹3,300 crore for a new third plant in Bidadi (Karnataka) facility. This expansion, aimed at contributing to Make-in-India, increases TKM’s production capacity by 100,000 units, annually thus further adding to the growth of local ecosystem of suppliers and job creation of over 2000 direct employment in State of Karnataka.

With this third plant expansion going mainstream in 2026, TKM’s annual production capacity at Bidadi is expected to be augmented to 4.42 lakh annually, the company said.

Prior to this in the year 2022, Toyota Group of companies that constitutes of Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts (TKAP) had signed and announced MoU with the government of Karnataka to invest ₹4,100 crore aimed at making deeper cuts in CO₂ emissions and enhance electrification and fast-paced shift towards greener technologies.

Toyota said since the commencement of its operations in 1999 in Karnataka, TKM including its group companies has invested more than Rs.16,000 crore and created close to 86,000 jobs in the entire value chain (including supplier and dealer partners) underlining its philosophy of making in India not only for India but for the world. Over the past 25 years, it has cumulative export contributions of around Rs.32,000 crore.

“Under the project, four-lakh electric and hybrid cars are expected to be manufactured every year with an investment of Rs.20,000 crore, generating 8,000 direct jobs and indirect employment for 8,000. This project will revolutionise the automobile sector,” Eknath Shinde, Chief Minister of Maharashtra said.