Toyota Kirloskar Motor Pvt Ltd (TKML), the Indian subsidiary of Japan’s Toyota Motor Corp, the world’s largest passenger car maker, is increasing its investment by Rs 800 crore at its manufacturing site near Bangalore, to touch Rs 4,000 crore by 2016.
The company is in the process of investing Rs 3,200 crore in a second plant at the same site, which is under construction, to produce a small car for India which will be ready by 2010. The additional Rs 800 crore investment will be invested during 2011-2016. The company has so far invested Rs 1,700 crore for its first plant, starting from 1997, which has an annual capacity of 60,000 units. Including the fresh investment, Toyota's total investment in India will go up to Rs 5,700 crore by December 2016.
The second car plant, with an annual capacity of 100,000 units, is scheduled to be completed and commissioned in December 2010 to produce the small car.
Karnataka’s minister for large and medium scale industries, Murugesh R Nirani, said today, “After losing Tata Motors’ Nano car project last year, we met Toyota officials in Japan and offered them several concessions and convinced them to increase their investment in the Bidadi plant (40 km from Bangalore). They have accepted our offers and are going to increase their investment to Rs 4,000 crore, an addition of Rs 800 crore over their earlier investment programme.”
