Auto major Toyota plans to open third manufacturing plant in India
The expansion plan in India is due to rising demand leading to long waiting periods on certain products. However, details about production capacity, location and investment are not known
Japanese auto major Toyota is planning to set up a third manufacturing plant in India even as its two existing facilities are running at almost full capacity.
The Bengaluru-based Toyota Kirloskar Motor (TKM) currently operates two plants in the country with a total production capacity of around 3.42 lakh units per annum.
Industry sources told PTI that the auto major, a joint venture between Toyota Motor Company and Kirloskar Group, is looking to open a third production plant in the country. This is because of rising demand leading to long waiting periods on certain products, the sources said.
Details about the production capacity, location and investment in the new plant were not immediately known.
A TKM spokesperson told PTI: "We would like to refrain from commenting on speculations and future plans."
Booming sales
In May, the company opened a third shift at its Bidadi-based plant near Bengaluru to enhance production by about 30 per cent as it looked to cut down waiting periods on some models.
The company invested over ₹90 crores to upgrade the existing infrastructure at the facility and added about 1,500 workers for the third shift at the plant. The automaker has two facilities within the Bidadi compound, which roll out different sets of products.
TKM's Plant 1 commenced production in December 1999, rolling out Innova Hycross, Innova Crysta, Fortuner, and Legender. It has an installed production capacity of 1.32 lakh units per annum.
The second plant at the same site, with an installed production capacity of 2.10 lakh units, produces Camry Hybrid, Urban Cruiser Hyryder and Hilux. The facility commenced production in December 2010.
TKM has seen a robust increase in demand for its models this year. In the January-August period, its sales grew by 34 per cent to 1,47,192 units from 1,09,669 units in the same period of last year.
With an increase in bookings, the waiting period for some of the company's products has crossed the one-year mark. In April, TKM temporarily halted bookings of top trims of its multi-purpose vehicle Innova Hycross owing to supply challenges.
Last year, it stopped taking orders for the diesel variant of Innova Crysta due to high demand and an increased waiting period.
(With agency inputs)