Toyota’s Third Manufacturing Plant In India To Start By 2026

Toyota Kirloskar Motor (TKM) has signed a Memorandum of Understanding with the government of Karnataka to set up its third production facility in India. This new manufacturing unit will be set up in Bidadi, near Bengaluru, and Toyota aims to increase its production capacity by 1 lakh units annually. 

Combined, the two TKM plants have a capacity of approximately 3.5 lakh units annually. TKM says the new plant will be built with an investment of ₹3,300 crore and will be completed in 2026. Furthermore, the third plant is expected to add about 2,000 jobs and is expected to add potential for growth in the supplier ecosystem. It is unclear which models Toyota will produce at this new facility. However, this does signify that the additional production capacity will help Toyota to battle the high waiting period on some of its popular models. 

Masakazu Yoshimura, Managing Director and Chief Executive Officer, of Toyota Kirloskar Motor, said, “Toyota continues to be highly positive of the Indian market. We have steadily grown our business and supply chain in line with making India a global hub for manufacturing.” He added, “We will continue to work together with the government to develop a world-class local ecosystem that promotes the best solutions for India by focusing on improving energy security, promoting economic growth & achieving Carbon Neutrality.”

Currently, TKM produces six models in its two plants in Bidadi. The first plant, set up in 1997, is used to manufacture the Innova Hycross (also Maruti Suzuki Invicto), Innova Crysta and Fortuner and has an annual capacity of up to 1.32 lakh units. The second plant, established in 2010, produces the Camry, Urban Cruiser Hyryder (also Maruti Suzuki Grand Vitara) and the Hilux and it has an annual capacity of up to 2.10 lakh units.