Toyota Kirloskar Motor (TKM) announced today that Toyota Motor Corporation (TMC) has decided on a capital investment of approximately Rs 3,200 crore (Yen 68 billion) for the second plant currently being constructed at Bidadi near Bangalore.
Earlier, a decision was made to invest Rs 1,647 crore (Yen 35 billion) for the buildings and basic equipment for the second plant. An additional amount of around Rs 1,553 crore (Yen 33 billion) will be invested for both general-purpose and specialised equipment necessary for manufacturing a new compact vehicle.
The second TKM plant is scheduled to begin operations in 2010, with an initial annual production capacity of around 1,00,000 vehicles. The second plant will produce passenger vehicles, including the Corolla, as well as a new compact vehicle. The aim is to meet the broad needs of customers in India, where motorisation is expanding rapidly, the company said in a press release.
Both TKM plants will play an important role in TMC's sustainable plant activities, which seek to emphasise the role of nature in creating production sites that are in harmony with their natural surroundings.
TKM is a joint venture company between TMC and the Kirloskar Group. Currently, TKM produces the Corolla and the IMV series Innova, with annual production of 52,000 vehicles. Once production begins at the second plant in 2010, the two TKM plants will have a combined annual production capacity of around 1,60,000 vehicles.
TMC is expanding its local production in India and is actively investing to create attractive products, the release added.