Toyota has ended years of speculation by announcing that it will construct a third plant in India. The automaker and the Karnataka government have inked a Memorandum of Understanding (MoU) for the establishment of the third production facility, which would be located adjacent to its current facilities in Bidadi, which is near Bangalore. There hasn't been a formal announcement, but the new production factory is expected to be completed by 2026. Market sources state that the firm's current Bidadi factories can produce about 4 lakh units annually overall. It is expected that this new plant will increase production capacity by about thirty percent. With an investment of Rs 3,300 crore, Toyota will build a brand-new third plant in our country, which will also help to create jobs. Right now, the manufacturer has not released any details on the vehicles that will be made at this facility. Market reports, however, indicate that the plant will serve as the main hub for the manufacturing of Toyota's upcoming three-row SUV.
Toyota's Third Manufacturing Plant in India: More Production, More Jobs
The company claims that the new plant in India will increase production capacity by 1 lakh units annually, bringing the total manufacturing capacity to roughly 4.42 lakh units. In addition to illustrating the brand's determination to support the Made-in-India campaign, the plant will act as a springboard for the creation of more job opportunities, specifically for an estimated 2,000 Indian workers. In our market, several Toyota vehicles, like the Hycross and the Hyryder, are said to have lengthy wait times. It is anticipated that the long waiting periods for these vehicles will drastically decrease with the opening of this new plant.
Industry reports state that Toyota has created over 88,000 employment opportunities for those associated with the value chain, including suppliers and dealer partners, and invested over Rs 16,000 crore, since its inception in our market. In addition, Toyota's total export contribution to date is said to be around Rs 30,000 crore.
As mentioned, Toyota plans to utilise the new manufacturing plant to produce its upcoming three-row SUV, which reportedly will be a modified version of the Corolla Cross that is offered in foreign countries.
Toyota's Third Manufacturing Plant in India: Some More Highlights
The announcement regarding the expansion is momentous for the brand because it comes at the same time as it celebrates 25 years in India. The automaker asserts that its latest investments will solidify the brand's place in the global vision for a brighter future by facilitating the development of environmentally friendly transportation options that improve people's lives. Moreover, the upcoming plant will allow the company to maintain control over long waiting times on the vehicles with the increased manufacturing capacity.