"The Government of India has accorded the Directorate General of Supplies & Disposals (DGS&D) rate contract for the Toyota Innova 2.5 E seven and eight seater diesel versions," Toyota Kirloskar Motor (TKM) said in a statement.
DGS&D is the central purchase and quality assurance organisation under the Department of Supply of the Ministry of Commerce. For bulk purchases of the government departments, DGS&D approval is a mandatory requirement.
With the DGS&D rate contract effective from April, the Toyota Innova 2.5E can now be supplied to all government agencies at the Union and State levels at the government approved rate," it said.
Innova is the company's largest selling vehicle in India with 6,235 units sold in March and cornered about 42 per cent market share in the segment. The company has planned to increase the production of Innova up to 50,000 units per annum.
The company has recently announced Rs 1,400 crore investment to set up its second plant in Bangalore, which would roll out a small car with a production capacity of one lakh units by 2010.
TKM is a joint venture between Japan's Toyota Motor Corporation and the Kirloskar Group. The JV has invested about Rs 1,500 crore in its plant in Bidadi.
Employing over 2,800 people, the plant has an installed capacity to manufacture 60,000 vehicles per year.
