Toyota’s Rs 20,000 crore investment in Maharashtra: Karnataka industries minister says no setback for state

Headquartered in Karnataka, TKM is setting up a greenfield manufacturing facility in Chhatrapati Sambhaji Nagar.

With Toyota Kirloskar Motor (TKM) signing a Memorandum of Understanding (MoU) with the Maharashtra government on July 31 for an investment of around Rs 20,000 crore, Karnataka Industries Minister MB Patil has stated that this development is not a setback for the state.

TKM’s investment in Maharashtra comes after Bengaluru-based electric two-wheeler maker Ather Energy’s decision to set up its third manufacturing facility in Aurangabad Industrial City (AURIC), Maharashtra, with an investment of Rs 2,000 crore.

Also, read: Toyota to set up manufacturing plant in Maharashtra; likely to invest Rs 20,000 crore

Patil said that it is common for companies to expand their operations into other regions and that TKM’s investments in neighboring states should not be viewed as a loss for Karnataka. "TKM is free to invest in Maharashtra. Their investment in other states does not affect their commitment to Karnataka. The company’s investment in Karnataka will continue as planned," he said.

Headquartered in Karnataka, TKM is setting up a greenfield manufacturing facility in Chhatrapati Sambhaji Nagar. The company already operates two manufacturing units in Bidadi, near Bengaluru.

Patil assured that TKM’s significant investment in Karnataka, where the company has been established for 30 years, will continue as scheduled.

"TKM shares a long-standing and strong relationship with Karnataka, spanning nearly 30 years. TKM's investment in Maharashtra does not impact its ongoing commitment to Karnataka," Patil stated.

He said, "TKM has signed an agreement with the Karnataka government to establish its third car manufacturing unit in Bidadi by 2023, with an investment of Rs 3,300 crore. Additionally, the company invested Rs 4,100 crore in Karnataka in 2022. The company’s headquarters and research centers are based here."

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

Patil further explained that TKM's decision to invest in Maharashtra might be influenced by various factors, including logistical considerations. "Being headquartered in one state does not preclude a company from investing elsewhere," he said.

In Karnataka, TKM and its group companies have invested over Rs 16,000 crore and created nearly 86,000 jobs across the value chain. The company’s cumulative export contributions amount to around Rs 32,000 crore, a statement from TKM said.

Meanwhile, former Infosys CFO TV Mohandas Pai expressed concern on X: “Why did Karnataka lose this investment? This is very concerning. It’s a big blow to us. Hubli-Dharwad would be a great location.”

Later, Pai clarified: “Thanks Minister @MBPatil for confirming that @Toyota_India is happy with Karnataka and is expanding to Maharashtra to diversify its locations.”

Also, read: Bengaluru-based Ather Energy's Rs 2,000-cr investment in Maharashtra: Priyank Kharge, Mohandas Pai react