Toyota Kirloskar Motor today formally opened its factory at Bidadi, 30 km from here signifying the completion of the first phase of the multi-crore project that will see the manufacture of an entire range of the well-known Japanese fleet of vehicles.
While the first phase starting with the foundation stone in June 1998 was completed ahead of schedule, the second phase is already in the planning stage and will go on stream shortly.
The first phase will see the manufacture of utility vehicles like the multi-purpose Qualis, the second would signal the making of the Toyota small car while with the third and final phase Toyota luxury buses would roll out of the factory.
More From This Section
By the time the third phase is completed, Toyota Kirloskar Motor (TMC) would have invested $1,150 million in the project.
The Toyota factory located on a 430 acre plot with a capacity of 50,000 per annum is the 25th to be based out of Japan. TKM vice-chairman Vikram S Kirloskar said Rs 700 crore had been invested in the first phase of the project. "Our goal is to be the biggest auto-maker in India," he said.
Mr Kirloskar said TKM had kept up three promises made to the Karnataka Gover nment. One, that it completed its project on schedule. Two, it had recruited 90 per cent of its staff from the local population. Third, TKM had initiated tie-ups between local industries and Japanese companies to make spare-parts for the Toyota range of vehicles.
"If everything is taken into account, including initiating tie-ups for spare parts, the Japanese investment in the first phase will cross Rs 1,000 crore," he said. In the first year itself TKM had achieved 55 per cent localisation, well ahead of the 50 per cent within three years stipulated by the Union Government, Mr Kirloskar said.
Toyota honorary chairman Dr S Toyoda said he was happy that the company took the decision to locate near Bangalore and stressed that the aim was to go in for increase localisation. Technology transfer was also on the cards as the project advanced, he said.
Chief minister S M Krishna said Toyota's choice of Bangalore proved that the city continued to be an undisputed destination for foreign investment and said none of the neighbours including Chennai and Hyderabad could match the city for its temperate climate throughout the year. "This is our biggest asset," he said.
Toyota Kirloskar is among four major automobile projects currently underway in Karnataka. The other three Volvo, TVS and Telco were also in various stages of progress of which Volvo was already manufacturing a range of trucks from its factory near Bangalore.