Toyota Kirloskar Motor Signs MOU with Maharashtra for Proposed New Investment
- Toyota Kirloskar Motor (TKM) has signed an MOU with the Government of Maharashtra to explore the potential of setting up of a Green Field Manufacturing Facility
- This announcement comes close to the recent two mega investment commitment in the State of Karnataka that includes the setting-up of 3rd plant in Bidadi with an investment of Rs. 3,300 crore
Mumbai, July 31, 2024: Reaffirming a strong commitment to India, Toyota Kirloskar Motor today signed a Memorandum of Understanding (MOU) with the Government of Maharashtra, to examine the setting-up of a Green Field Manufacturing Facility at Chhatrapati Sambhaji Nagar. Headquartered in Karnataka, TKM already boasts a world-class manufacturing setup with two state-of-the-art units located at Bidadi, well-equipped to contribute and strengthen India’s position in the global automobile landscape.
The Memorandum of Understanding with the Government of Maharashtra was exchanged today by Dr. Harshadeep Kamble (IAS), Principal Secretary (Industries), Government of MH and Mr. Sudeep Santram Dalvi, Director & Chief Communications Officer, TKM in the august presence of Mr. Eknath Shinde Ji, Hon’ble Chief Minister, Mr. Devendra Fadnavis Ji, Hon’ble Deputy Chief Minister, Mr. Ajit Pawar Ji, Hon’ble Deputy Chief Minister and other key dignitaries. Present from TKM were Mr. Masakazu Yoshimura, MD and CEO of Toyota Kirloskar Motor and Regional CEO at Toyota Motor Corporation (TMC), Ms. Manasi Tata, Vice Chairperson TKM, Mr. Swapnesh R. Maru, Deputy Managing Director TKM.
Since the commencement of its operations in 1999, India has been growing in importance and has now become a vital market for Toyota globally. Operating under the core values of “Grow India – Grow with India,” the company has been working extensively to expand its operations in alignment with key national priorities of skill enhancement, localization and development of the local ecosystem.
Integral to the company’s robust operations and significant expansion has been the immense support by Government of India and the state of Karnataka which has laid a strong foundation of growth that has now enabled the company to enter the next stage of expansion. Over the past 25 years, Toyota has well established itself as a model company for innovation and manufacturing practices leading to large scale economic and social development of the region. In the State of Karnataka, Toyota Kirloskar Motor including its group companies has invested more than INR 16,000 crores 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, Toyota’s cumulative export contributions also stand at approx. INR 32,000 crores thus representing the company’s export focus. The company has also made a difference to over 2.3 million lives by championing various social cause aimed at enhancing quality of life at grassroot level.
About the New Green Field Manufacturing Unit in Maharashtra
Backed by an expanding product portfolio, steadily increasing consumer demand for world-class products and growing export orientation, proposal for the new facility is a testament to TKM’s strong commitment to India. Under the MOU, TKM is considering a significant investment for setting up a Greenfield Manufacturing Facility that will further strengthen the company’s focus on advanced green technologies along with quality products and services. The proposed investment, once finalized, is expected to be made over a multi-year period, potentially contributing to substantial job creation and economic growth in the region.
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.
Present at the MOU event on the occasion, Mr. Masakazu Yoshimura, MD and CEO of Toyota Kirloskar Motor and Regional CEO at Toyota Motor Corporation (TMC) said “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 & Oceania Region and acting as the hub of the new “India, Middle East, East Asia & Oceania Region”. Today’s MOU signing marks a pivotal point as we stride into the next phase of growth in the country enabling us to contribute to enriching lives with qualitative mobility solutions locally and globally.”
Commenting on the MOU and present at event Ms. Manasi Tata, Vice Chairperson, Toyota Kirloskar Motor said “For us at the company, the last 25 years of operational excellence from our Bidadi Plant has created the foundation for future direction of Toyota in India. Our strategic focus on “Make in India” and “Skill India” will enable us to implement sustainable, long-term growth strategy which will enable us to offer cleaner greener mobility solutions to our customers and act as a catalyst towards Government’s roadmap of “Viksit Bharat 2047”.”
Speaking of the new MOU event, Mr. Swapnesh Maru, Deputy Managing Director, TKM said “The State of Karnataka has helped us to firmly establish ourselves as a tested base for manufacturing excellence. Proposal for the Green Field Manufacturing Facility at Chhatrapati Sambhaji Nagar continues our commitment to advancing sustainable mobility in India. This will act as a tipping point to unlock the potential of Marathwada region, unleashing its entrepreneurial capabilities and providing new age skills to its youth so as to bring Marathwada as a key contributor to Maharashtra’s growth.”
At present, TKM already has a resilient world-class manufacturing base in India, the company has two plants located in Bidadi with an annual installed capacity of 3.42 lakh vehicles/year employing over 6000 people. Operations at both our plants are guided by Toyota Environmental Challenge (TEC) 2050 that acts as the bedrock of the company’s commitment towards a greener future and a better world. Toyota has adopted various environmental risk mitigating measures through TEC 2050, towards realizing the carbon neutrality targets. In addition, the facility also houses a robust base of over 200 suppliers all dedicated towards providing world-class parts towards making ever-better cars that are aimed at producing “Mass Happiness for All”.
In 2023, TKM announced fresh investments of about Rs. 3,300 crores for a new 3rd plant in Bidadi 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.
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 their Memorandum of Understanding (MOU) with the Government of Karnataka to invest INR 4,100 crores aimed at making deeper cuts in CO2 emissions and enhance electrification and fast pace shift towards greener technologies.
