Toyota Kirloskar Motor pledges Rs 20,000 crore investment in Maharashtra for a manufacturing unit

Mumbai (Maharashtra) [India], July 31 (ANI): Automobile company Toyota Kirloskar Motor has signed a Memorandum of Understanding with the Maharashtra government for an investment worth Rs 20,000 crore for a hybrid and electric vehicle unit.

The MoU was signed on Wednesday in the presence of Chief Minister Eknath Shinde and Deputy Chief Minister Devendra Fadnavis.

“The project will produce electric and hybrid cars at Chhatrapati Sambhajinagar. 20 thousand crores will be invested for this and about 8 thousand direct and 8 thousand indirect 16 thousand jobs will be created. This project is expected to produce 4 lakh cars per year,” the chief minister Shinde posted on X after the MoU ceremony.

The investment will be made in Chatrapati Sambhajinagar in the state’s Marathwada region.

“This investment will take Maharashtra a step ahead in the automobile ecosystem. Chief Minister Eknath Shinde and our industries department have worked to bring this investment to Maharashtra. Many others were also interested in getting the same investment to their respective places, but Maharashtra ensured that it came into the state,” Fadnavis said in a video message.

Around 8000 direct and 12000 indirect jobs are expected to be created through this investment, he said.

“The investment of Rs 20,000 crore by Toyota Kirloskar Motor Company in Chhatrapati Sambhaji Nagar will take Maharashtra a step forward in the automobile sector. This investment will create 8,000 direct and 12,000 indirect jobs. Congratulations to Marathwada for this historic deal!” Fadnavis wrote on X.

In a release, the automaker said it will examine the setting-up of a Green Field Manufacturing Facility at Chhatrapati Sambhaji Nagar.

Headquartered in Karnataka, it already boasts a world-class manufacturing setup with two state-of-the-art units located at Bidadi. The two plants located in Bidadi with an annual installed capacity of 3.42 lakh vehicles/year employing over 60,00 people. In 2023, TKM announced fresh investments of about Rs 3,300 crores for a new 3rd plant in Bidadi facility. This expansion, aimed at contributing to Make-in-India, increases TKM’s production capacity by 100,000 units.

Since the commencement of its operations in 1999, India has been growing in importance and has now become a vital market for Toyota globally.

In Karnataka, Toyota Kirloskar Motor, including its group companies, has invested more than Rs 16,000 crores and created close to 86,000 jobs in the entire value chain (including supplier and dealer partners). Toyota’s cumulative export contributions also stand at approximately Rs 32,000 crores, the release said.

“Under the MOU, TKM is considering a significant investment for setting up a Greenfield Manufacturing Facility that will further strengthen the company’s focus on advanced green technologies along with quality products and services. The proposed investment, once finalized, is expected to be made over a multi-year period, potentially contributing to substantial job creation and economic growth in the region,” said the automaker.

Masakazu Yoshimura, MD and CEO of Toyota Kirloskar Motor and Regional CEO at Toyota Motor Corporation (TMC) said Toyota Motor Corporation believes that India is well positioned to become a global manufacturing hub for cleaner and greener mobility solutions.

“This belief was reinforced with the recent regional restructuring which elevated India to play central role by being integrated into the Middle East, East Asia & Oceania Region and acting as the hub of the new India, Middle East, East Asia and Oceania Region.”

In 2022, it had signed and announced their Memorandum of Understanding (MOU) with the Government of Karnataka to invest Rs 4,100 crores aimed at making deeper cuts in CO2 emissions and enhance electrification and fast pace shift towards greener technologies.