Toyota sets plans to increase manufacturing capacity in India

Japanese automobile giant Toyota Motor Corporation has started the process to increase manufacturing capacity in India as both their plants are running at full capacity.

This was stated by Toyota Motor Corporation Board Member and Executive Vice President Yoichi Miyazaki during the Japan Mobility Show on Thursday, 26 October, 2023. He has also indicated that the company has started initial rounds of talks about any fresh investments that are to be made for the enhancement of capacity in India.

Yoichi Miyazaki also stated that the demand for high-segment automobiles has increased in India since the COVID pandemic. Since COVID, the market recovery in India has been much stronger compared to other countries. Hence, the demand is also high.

Toyota Kirloskar Motor is a Bengaluru-based joint venture between Toyota Motor Company and Kirloskar Group. It operates two manufacturing plants with a maximum production capacity of 3.42 lakh units per year. Due to rising demands and a long waiting period, car manufacturers are looking to establish a third plant in India. Miyazaki has acknowledged the rise in demand for bigger cars in India as a good sign for the automobile company. This shift of demand from small cars to higher segments makes the car market more attractive for a company like Toyota, which has seen an unusual increase in demand for its high-segment models this year. The automakers saw a 35% increase in sales to 123,939 units from 91,843 units last year during the April–September period.

Both the facilities of the car maker are located in the Bidadi compound in Karnataka. One plant was established in December 1999 and manufactures car models like the Innova Hycross, Innova Crysta, Fortuner, and Legender. The total production facility of this plant is around 1.32 lakh units per year.

The second plant manufactures cars such as the Camry Hybrid, Urban Cruiser Hyryder, and Hilux. It has a total production capacity of 2.10 lakh units per year. This facility was established in December 2010.

The company also sells models like the Glanza and Rumion, which are outsourced from Maruti Suzuki India as part of a global partnership between Suzuki and Toyota. It also imports models like the Vellfire and LC 300 as completely built-up units (CBU).

In early 2023, Toyota Kirloskar Motor had started a third shift in the Bidadi plant to increase production capacity by 30% and cut down the waiting period on certain models. An investment of around Rs. 90 crore has also been made to upgrade current infrastructure and add 1,500 more employees for the third shift at the plant.