Toyota To Set Up A Third Manufacturing Plant In India By 2026

The new facility will also be built in Karnataka with an estimated investment of around Rs 3,300 crores

The best-selling Japanese carmaker in India, Toyota, has just signed a Memorandum of Understanding (MoU) with the government of Karnataka to expand its operations with fresh investments. Toyota Kirloskar Motor is ready to set up an all-new manufacturing facility at a cost of around Rs 3,300 crores.

This will be Toyota’s third plant in India, and it will also be located in Bidadi on the outskirts of Bengaluru, near the existing two plants. It is planned to increase the carmaker’s production capacity by 1 lakh units per year and is said to be completed in 2026. While it is yet to be confirmed which all models will be manufactured at this new plant, we know that the Toyota Innova Hycross will be one of them. Even though Toyota is not as gung-ho about EVs in India as some others, those models are inevitable and it would be a fair guess that the new plant will be capable of producing them as well.

Speaking on the occasion, Masazaku Yoshimura, Managing Director and Chief Executive Officer, Toyota Kirloskar Motor, mentioned, “As a further boost to the company’s contribution to “Make-in-India”, we are very pleased to state that the new investments will enhance TKM production capacity by 1,00,000 units and adding around 2,000 new jobs. The new development also brings with it the potential for further growth in the supplier ecosystem. As we celebrate TKM’ s 25 years in India, this journey is a testament to the passion, hard work and dedication of our Toyota team and various stakeholders. I thank and congratulate each of them for their valuable contribution in creating a sustainable future for all, with no one left behind.”

Toyota is one of the few brands in India offering strong hybrid powertrains, as seen with the Urban Cruiser Hyryder SUV, Hycross MPV, Camry premium sedan and Vellfire luxury MPV giving it strong market distinction. Meanwhile, iconic models like the Innova Crysta and Fortuner continue to enjoy a strong following. Additionally, shared models with Maruti Suzuki like the Glanza hatchback, Rumion MPV and the upcoming Maruti Fronx based crossover allow it to increase its market share. The additional capacity could also enable Toyota to stay on top of high waiting periods in the future.