Toyota Kirloskar Motor and the Karnataka government on 22nd November, 2023, signed a memorandum of understanding (MoU) for further expansion of the car maker's manufacturing facility at Bidadi in Karnataka.
As per the MoU, TKM will make an additional investment of Rs. 33 billion (US$ 396.1 million) to set up its third manufacturing facility at Bidadi, about 35km from Bengaluru, potentially generating employment for local individuals.
Toyota's existing plants at Bidadi have a very high combined output, and this new plant - operational by 2026 - will aid greatly to Toyota's production capacity. This announcement comes on the back of the brand completing 25 years in India.
This new plant will be the primary production base for an upcoming three-row SUV, which, as press has reported previously, will be a longer version of the Corolla Cross sold overseas. It's codenamed the 340D and Toyota is expected to produce large number of units annually, with a launch likely by 2026.
The MoU was signed and exchanged on 22nd November, 2023, by chief minister Siddaramaiah, government of Karnataka and Masakazu Yoshimura, managing director (MD) and chief executive officer (CEO), Toyota Kirloskar Motor in the presence of DK Shivakumar, deputy chief minister of Karnataka; M B Patil, Minister for Large & Medium Industries, and Infrastructure Development, government of Karnataka, and Ms Geetanjali Kirloskar, chairperson and managing director, Kirloskar Systems.
"We take immense pride in being the home to Toyota's manufacturing plants and express our appreciation for Toyota's plans for further investments in the state. Their presence in Karnataka since 1997, is an example of the state consistently remaining an attractive destination," said Mr Siddaramaiah, chief minister, government of Karnataka.
In the year 2022, the Toyota Group of companies constituting Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts (TKAP) signed and announced their MoU with the government of Karnataka to invest Rs. 41 aimed at making deeper cuts in CO2 emissions and enhance electrification and fast pace shift towards greener technologies.
TKAP is the best-case point for India's emergence as a global manufacturing hub of strategic importance through continued commitment to mass electrification by producing not only for India but for exports as well.
"The company's move to invest further in Karnataka marks a substantial step forward in realising our vision to emerge as Asia's forefront in Future Technology and Advanced Manufacturing. This harmonises seamlessly with the Industries and Commerce Department's vision for balanced and sustainable growth," said D K Shivakumar, deputy chief minister, government of Karnataka.
"Karnataka, as the pioneer in releasing a dedicated EV policy in 2017, updated in 2021, stands as the leader in attracting investments of Rs. 250 billion, spanning the entire EV value chain. With approximately 200,000 EVs registered in the State, Karnataka is steadfast in reshaping the mobility landscape," said B. Patil, Minister for Large and Medium Industries, and Infrastructure Development, government of Karnataka.
Furthermore, the government is coming up with a new clean mobility policy that aims to position Karnataka as the premier destination for EV manufacturing, spanning the entire value chain from battery and cell manufacturing, component production, original equipment manufacturers, charging and testing infrastructure, to research and development.
"With this, the government aims to attract investments of Rs. 500 billion across the entire EV value chain, generating approximately 100,000 new jobs, and establishing a comprehensive and supportive EV ecosystem in the State", Patil added.