Toyota plans to invest Rs 3,200 cr in India plant

Toyota Kirloskar Motor (TKM) today announced that its parent company Toyota Motor Corporation (TMC) has earmarked a capital investment of Rs 3,200 crore for the second plant, which is being constructed at Bidadi near Bangalore. TKM is a joint venture company between TMC and the Kirloskar Group.

Earlier, the company decided to invest Rs 1,647 crore for the buildings and basic equipment for the second plant. An additional amount of around Rs 1,553 crore will be invested for both general-purpose and specialised equipment necessary for manufacturing a new compact vehicle.

The second plant, which is scheduled to begin operations in 2010, will produce passenger vehicles, including the Corolla, and a new compact vehicle. The plant has an initial annual production capacity of around 100,000 vehicles.

The aim is to meet the broad needs of customers in India, where motorisation is expanding rapidly, the company said in a press release.

Currently, TKM produces the Corolla and the IMV series Innova, with an annual production capacity of 52,000 vehicles. Once the second plant begins production, both the TKM plants will have a combined annual production capacity of around 160,000 vehicles.