Toyota Kirloskar Motor to invest Rs 3,300 crore in Karnataka, generate 2,000 jobs

The Karnataka government on November 21 signed a Memorandum of Understanding with automobile major Toyota Kirloskar Motor.

The Karnataka government on November 21 signed a Memorandum of Understanding (MoU) with the automobile major Toyota Kirloskar Motor (TKM), an Indian subsidiary of Japan's Toyota Motor Corporation, to facilitate the further expansion of its car manufacturing facility at Bidadi in Karnataka.

According to the MoU, TKM will make an additional investment of Rs 3,300 crore to establish its third manufacturing facility with a capacity of 1 lakh units at Bidadi, approximately 35 km from Bengaluru, generating employment for up to 2,000 people.

The new unit, scheduled to commence production by 2026, will have an annual capacity of 1 lakh units in two shifts. It will be set up at the company's existing facility at Bidadi, where it currently operates two units with a combined installed production capacity of up to 3.42 lakh units annually.

"Toyota's plans for further investments in the state, evident since 1997, are an example of the state consistently remaining an attractive destination," said Karnataka Chief Minister Siddaramaiah.

The new plant, in addition to producing the multi-utility vehicle Innova HyCross, will be "future-ready" to roll out models across different fuel technologies, according to TKM executive vice president & country head Vikram Gulati.

Karnataka Minister for Large and Medium Industries MB Patil said: "Karnataka, as the pioneer in releasing a dedicated EV policy in 2017, updated in 2021, stands as the leader in attracting investments of Rs 25,000 crore, spanning the entire EV value chain. With approximately 2 lakh EVs registered in the State, Karnataka is steadfast in reshaping the mobility landscape."

He said that the government is introducing a new clean mobility policy aiming to position Karnataka as the premier destination for Electric Vehicle (EV) manufacturing, covering the entire value chain from battery and cell manufacturing to component production, original equipment manufacturers, charging and testing infrastructure, and research and development.

"With this, the government aims to attract investments of Rs 50,000 crore 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.

"As a future-ready mobility company, we are confident that today's significant MoU with the Karnataka government for the new plant will positively contribute through consequent employment generation and expand the adoption of advanced clean technologies," said TKM managing director and CEO Masakazu Yoshimura at the event.

Yoshimura further stated that TKM would continue to collaborate with the government to develop a world-class local system that promises the best solutions for India by focusing on improving energy security, promoting economic growth, and achieving carbon neutrality.

In a statement, Toyota CEO Asia Region Masahiko Maeda said, "The Indian market has always been of great importance to us. We are confident that the new investments in India will further elevate TKM's role in our global vision for a more promising future by creating sustainable mobility solutions that enrich people's lives worldwide."

Last year, Toyota group firms, including TKM and Toyota Kirloskar Auto Parts, signed an MoU with the Karnataka government to invest Rs 4,100 crore to enhance electrification, the fast-paced shift towards greener technologies, and a deeper cut in CO2 emissions. So far, Toyota has invested a total of Rs 16,000 crore in India in various activities.