Toyota Plans To Add New Production Facility In Aurangabad

Toyota Kirloskar Motor (TKM) has signed a Memorandum of Understanding (MoU) with the government of Maharashtra to set up a new production facility in Chhatrapati Sambhajinagar (formerly known as Aurangabad), Maharashtra. The MoU has been signed to explore a Green Field Manufacturing facility in the city. The headquarters of TKM will remain at its facility in Bidadi, Karnataka.

Masakazu Yoshimura, MD and CEO of Toyota Kirloskar Motor and Regional CEO at Toyota Motor Corporation, commented, "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. Today’s MOU signing marks a pivotal point as we stride into the next phase of growth in the country enabling us to contribute to enriching lives with qualitative mobility solutions locally and globally."

According to a report by the Times of India (TOI), TKM will invest ₹25,000 crore in the new plant. “Toyota Kirloskar Motor’s decision to invest in Maharashtra assumes importance. Once again, it has been established that Maharashtra is a favoured destination for investors,” Maharashtra’s deputy chief minister Devendra Fadnavis told TOI. He also had been pursuing the investment from TKM as it would help develop the Marathwada region of the state. 

According to the report, the new facility in Chhatrapati Sambhajinagar will help create employment for 24,000 people. It will be split between 8,000 people directly employed by TKM and the rest in ancillary units. 

This will be Toyota’s fourth production facility in the country. It currently has two production facilities in Bidadi, Karnataka and has signed a MoU with the Government of Karnataka for the third unit in November 2023. The latter is said to increase the brand’s production capacity by 1 lakh units annually. Overall, the three Karnataka plants are said to have an annual capacity of 4.5 lakh units. 

The new facility is said to be operational in the next three years and is expected to have an annual capacity of 4 lakh units. Furthermore, an industries department official told TOI that the new plant will have the capability to manufacture electric and internal combustion engine (ICE) vehicles. The official added, “It is the beginning of the industrial development of the region, particularly in the automobile sector. We feel once the unit starts manufacturing, it will change the region’s economy.”