Toyota starts work Toyota starts work on second India plant

Toyota Kirloskar Motor has begun work on its second Indian manufacturing plant at Bidadi, near Bangalore. The new plant, which is being set up at a cost of Rs 1,400 crore, will have an annual production capacity of 100,000 vehicles and will begin production from 2010. Among the models that will be built here are the new small car that Toyota is developing especially for the Indian market. This new plant will be built near the company's existing factory and double its India production capacity to 200,000 units per annum. The company recently held a foundation stone unveiling ceremony at Bidadi signalling the start of construction at this plant. B S Yeddyurappa, chief minister of Karnataka, unveiled the foundation stone along with Akira Okabe, senior managing director, Toyota Motor Corporation. Speaking on the occasion, Okabe said “We hope to establish in Karnataka a firm base for our monozukuri culture – which combines production technologies based on the Toyota Production System and human resources development – and to be able to contribute to the growth of India through activities in Karnataka.” Toyota had started production at its first plant at Bidadi back in December 1999. Toyota Kirloskar Motor is the company's joint venture in India in which Toyota holds 89 percent with the remaning held by the Kirloskar Group. It currently produces the Corolla and Innova models. It produced 60,000 vehicles in 2007. The company also plans to launch its New Corolla in the Indian market in September this year at an expected price tag of Rs 12-13 lakh. It will be positioned in the entry luxury segment of the Indian passenger vehicle market and compete head on against the Honda Civic, which is currently the segment leader.