With an estimated expenditure of ₹3,300 crore, Toyota Kirloskar intends to establish a third manufacturing facility in Bidadi city, Karnataka. With two shifts, the new facility is expected to start producing 1 lakh units yearly by 2026.
The carmaker, which already has a production facility in Bidadi where 3.42 lakh units are produced annually, expects to create a sizable number of jobs—roughly 2,000, according to its claims.
In an effort to support local production in India, Toyota has made a strategic move. The facility will initially run in two shifts, with the option to run a third shift if necessary.
In addition to manufacturing the multi-utility vehicle Innova HyCross, Vikram Gulati, executive vice president & country head of Toyota Kirloskar Motor (TKM) told, the new factory will be “future ready” to roll out models stretching across several fuel technologies. “I believe, we are as a company future-ready, both in terms of access to technology, access to well-accepted products across various powertrains as also access to the ability to bring these products to market,” he stated.
The industry, he continued, has reasonably quick setup times for introducing different powertrains on the same line, or even numerous lines.
It does require some work, but in my view, it’s not a major obstacle. Because of this, we are now prepared and adaptable to any future powertrains. “And I’m confident that the upcoming plant will be significantly more sophisticated and equipped for the future,” Gulati responded when asked if the third plant would have the capability to manufacture cutting-edge automobiles like electric vehicles.
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This expansion provide any details has a knock-on effect that affects employment opportunities in addition to improved production capacities. Toyota anticipates adding roughly 2,000 jobs, boosting the regional economy.
Toyota struggles to fulfill client orders, as seen by wait times that range from four to eighteen months, even in spite of the robust demand for its automobiles. The supply-demand imbalance is highlighted by the October 2023 sales of 20,542 cars, which are down from September’s 22,168 units sold.
