Toyota initiates process to increase production capacity in India
Toyota is taking steps to increase its production capacity in India, as its two existing facilities are operating at maximum output. At the 2023 Japan Mobility Show, Toyota Motor Corporation Board Member and Executive Vice President Yoichi Miyazaki revealed that talks have begun on the subject. This decision is attributed to the strong market rebound and soaring demand for vehicles, particularly those in higher segments, in India following the COVID-19 pandemic.
Both plants operating at full capacity, says Toyota
Toyota Kirloskar Motor (TKM), a partnership between Toyota Motor Company and Kirloskar Group, runs two factories in India, with a combined annual production capacity of 342,000 units. The Bengaluru-based firm has experienced a significant surge in demand for its models this year. Sales rose 35% to 123,939 units between April and September, up from 91,843 units during the same timeframe last year. This heightened demand has resulted in extended wait times for certain products.
The carmaker is planning for a third manufacturing facility
To address this increasing demand, Toyota is contemplating the establishment of a third manufacturing facility in India. Miyazaki is of the opinion that the Indian automobile market's gradual transition towards larger vehicles makes it an appealing market for Toyota. He stated, "With the strength of higher segments going up in the Indian market, it tells us it is now Toyota's time." The two current plants are situated within the Bidadi complex in Karnataka.
A third shift was initiated at the Bidadi plant
Earlier in the year, TKM introduced a third shift at its Bidadi facility to boost production capacity by roughly 30% and decrease wait times. The company invested over Rs. 90 crore to improve existing infrastructure and added around 1,500 employees for the third shift at the plant. The Bidadi complex is home to two facilities: one producing Innova Hycross, Innova Crysta, Fortuner, and Legender models, and the other manufacturing Camry Hybrid, Urban Cruiser Hyryder, and Hilux vehicles.
