Japanese auto major Toyota Corporation inaugurated its Rs 1,100 crore diesel engine manufacturing plant here on Thursday.
The plant will manufacture powerful and high performance Global Diesel (GD) engine, the company said.
The new facility is set up by Toyota Industries Engine India (TIEI), a joint venture between Kirloskar Systems (KSL) and Toyota Industries Corporation - Japan (TICO).
"The introduction of GD series engines not only equips superior technology but also meets the new fuel efficiency policies mandate in the country," Toyota Kirloskar Motor Vice Chairman Vikram S Kirloskar said in a statement.
The facility is the first GD engine plant of Toyota in India and third globally, after Japan and Thailand.
The company realises diesel engine technology will remain an integral part of every automaker with strict fuel efficiency norms being implemented in India, therefore this engine project will strengthen the company's diesel business in the country, he added.
Spread across 22 acres, the plant has a capacity to produce BS 4 compliant 1.08 lakh engines per annum with an additional provision to upgrade to BS 5 and 6 with minimum investment and lead time in the future.
TIEI Deputy Managing Director T R Parasuraman said the company is strongly focused towards the 'Make in India' initiative and believes that this new engine project will add to achieve global manufacturing standards in the country.
The new plant will manufacture two types of diesel engine - 1GD-FTV 2.8 litre and 2GD-FTV - 2.4 litre.
Speaking on the occasion, Union Minister for Heavy Industries and Public Enterprises Anant G Geete said the government is equally concerned about increasing pollution and will work to address issues faced by the auto industry, which is one of the biggest contributors to India's GDP.
"In this regard we will take a comprehensive view about the current diesel ban on vehicles above 2,000cc, both on the development and environment front along with its impact on the investment climate," he added.
The Indian automotive market is the fifth largest in the world with 40% of the cars sold being diesel-driven.