Toyota Kirloskar Motor and the Karnataka government have officially inked a Memorandum of Understanding (MoU) to facilitate the expansion of the automaker's manufacturing facility in Bidadi, Karnataka.

According to the terms of the MoU, Toyota Kirloskar Motor (TKM) is set to make an additional investment of Rs 3,300 crore to establish its third manufacturing facility at Bidadi. This new facility, boasting a capacity of 100,000 units, will be situated approximately 35 km from Bengaluru and has the potential to generate employment opportunities for up to 2,000 individuals.

Currently, Toyota's existing plants in Bidadi collectively produce around 400,000 units annually. The forthcoming plant, slated to be operational by 2026, is expected to contribute approximately 30% to Toyota's overall production capacity. The announcement coincides with the brand's completion of 25 years in India.

The newly established plant will serve as the primary production base for an upcoming three-row SUV, codenamed the 340D. This SUV, a lengthened version of the Corolla Cross sold internationally, is anticipated to have an annual production of 60,000 units, with a potential launch in 2026.

The MoU signing ceremony took place in the presence of Chief Minister Siddaramaiah of the Government of Karnataka, Masakazu Yoshimura (MD and CEO, Toyota Kirloskar Motor), DK Shivakumar (Deputy Chief Minister of Karnataka), M B Patil (Minister for Large & Medium Industries, and Infrastructure Development, Government of Karnataka), and Geetanjali Kirloskar (Chairperson and Managing Director, Kirloskar Systems).

Expressing pride in hosting Toyota's manufacturing plants, Chief Minister Siddaramaiah stated, "Their presence in Karnataka since 1997 is an example of the state consistently remaining an attractive destination."

This move follows the Toyota Group's previous commitment to invest Rs 4,100 crore, aimed at reducing CO2 emissions and promoting electrification and green technologies. Toyota Kirloskar Auto Parts (TKAP), a part of the Toyota Group, plays a pivotal role in India's emergence as a global manufacturing hub, contributing to mass electrification for both domestic and export markets.

Deputy Chief Minister D K Shivakumar highlighted the significance of Toyota's expanded investment in Karnataka, aligning with the state's vision of becoming a leading force in Future Technology and Advanced Manufacturing.

Karnataka, with its pioneering EV policy and upcoming clean mobility policy, aims to position itself as the premier destination for EV manufacturing. Minister M B Patil emphasised the state's commitment to attracting investments totaling Rs 50,000 crore across the entire EV value chain, generating around 100,000 new jobs, and establishing a comprehensive and supportive EV ecosystem.

Source: Autocar Pro