Toyota to invest additional Rs 800 crore

Toyota will invest an additional Rs 800 crore in its Indian joint venture with the Kirloskar group to expand capacity of its Bangalore plant and launch a small car for the domestic market. Minister of Karnataka Industry Mr Murugesh R. Nirani told reporters that this investment is aimed to use in the second phase of expansion. This will be over and above Rs.32 billion (Rs.3,200 crore) it has committed to invest in the project, which includes a second plant to manufacture small car for the Indian market.
As the joint venture was awaiting government approval and allocation of additional land at Bidadi, about 30 km from this tech hub, for its expansion plans, therefore an official at Toyota-Kirloskar Motor Ltd (TKML) confirmed the additional investment but declined to elaborate. TKML, the decade old made a cumulative investment of Rs.17 billion (Rs.1700 crore) in the first phase. It invested Rs.12 billion (Rs.1200 crore) to set up the second plant for the small car project, with a production capacity of 65,000 units per annum in the second phase.