Toyota to increase investment in India

Toyota Kirloskar Motor (TKM) is increasing its investment at its upcoming manufacturing plant in Bidadi near Bangalore. The company will invest an additional Rs 800 crore, taking total investment at this site to Rs 4,000 crore by 2016. The additional amount will be invested during 2011-2016 to boost capacity at the facility.

To date, Toyota has invested Rs 1,700 crore at its first plant at Bidadi, which has an annual capacity of 60,000 units since it entered India back in 1997.

Including the fresh investment, Toyota’s total investment in India will go up to Rs 5,700 crore by December 2016.

The second plant, which is under construction, will produce a small car that the company plans to launch in the B segment of the market in 2010. This new facility will have an annual capacity of 100,000 units and is scheduled to be commissioned in December next year to produce the small car. The compact car is being desgined specifically for the Indian market, and pricing is likely to be in the Rs 4 -5 lakh range. To ensure that the car can be priced competitively, Toyota plans to start with 70 percent localisation.

The company is also awaiting approval from the government for additional land at Bidadi for its vendors and suppliers. The existing plant at Bidadi produces Toyota’s Innova and Corolla Altis saloon. TKM is also planning to widen its dealership network in India. At present, it has 85 dealers across the country and by the end of 2009 will add another 10 dealers. This number will rise to 150 dealers by 2010, just in time for the new model.