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Toyota Kirloskar Motor (TKM), a joint venture between Japan's Toyota Motor Corporation and Kirloskar Group, has signed a Memorandum of Understanding (MOU) with the Maharashtra government.
As part of the agreement, TK will set up a new Green Field Manufacturing Facility in Aurangabad Industrial City (AURIC) in Chhatrapati Sambhaji Nagar.
During the signing ceremony, Maharashtra Chief Minister Eknath Shinde, Deputy Chief Ministers Devendra Fadnavis and Ajit Pawar, along with key officials from TKM, including Managing Director and CEO Masakazu Yoshimura, were present.
How much will TKM invest?
While the company didn't reveal the investment figure, Maharashtra Deputy Chief Minister Devendra Fadnavis, in a post on X, said the project proposes an investment of up to Rs 20,000 crore and the potential to create 8,000 direct and 12,000 indirect jobs.
"The significant event of the MOU signing between the Government of Maharashtra and Toyota Kirloskar Motor, marks a major milestone for us. It is a proud moment for Maharashtra that the world's biggest brand Toyota Kirloskar Motor's Mr. Masakazu Yoshimura San, MD & CEO, and Ms. Manasi Tata, VC, have chosen Chhatrapati Sambhajinagar for this landmark investment," Fadnavis wrote.
Magnetic Maharashtra’s Major Milestone!
— Devendra Fadnavis (@Dev_Fadnavis) July 31, 2024
Toyota Kirloskar Motor's Investment Marks a New Era for Maharashtra...
The significant event of the MOU signing between the Government of Maharashtra and Toyota Kirloskar Motor, marks a major milestone for us. It is a proud moment for… pic.twitter.com/WwdCUCNoyQ
"Maharashtra government is determined to become India’s first trillion-dollar economy, having already surpassed the half-trillion-dollar mark. Maharashtra excels in manufacturing, fintech, technology, and logistics, making us a powerhouse in the Indian industries," he wrote.
The investment is anticipated to last several years and contribute significantly to job creation and economic growth in the region, the release notes.
TKM's presence in Karnataka
The new plant in Maharashtra will be TKM's third manufacturing facility in India, complementing its two existing units in Bidadi, Karnataka. These two facilities have an annual installed capacity of 3.42 lakh vehicles/year and employ over 6,000 people.
Last year, TKM announced fresh investments of about Rs 3,300 crore for a new third plant in the Bidadi facility.
The expansion increases TKM’s production capacity by 100,000 units annually, thus further expanding the local ecosystem of suppliers and creating over 2000 direct jobs in Karnataka.
TKM has been a significant player in India's automotive sector since it commenced operations in 1999. Over the years, TKM and its group companies have invested more than Rs 16,000 crore in Karnataka, creating approximately 86,000 jobs across the value chain.
The company’s cumulative export contributions are around Rs 32,000 crore, underlining its role in both domestic and global markets.
Leadership comments
Masakazu Yoshimura, MD and CEO of Toyota Kirloskar Motor and Regional CEO at Toyota Motor Corporation (TMC) highlighted the significance of this investment, stating that it will enable TKM to provide qualitative mobility solutions locally and globally.
“Toyota Motor Corporation believes that India is well positioned to become a global manufacturing hub for cleaner and greener mobility solutions. This belief was reinforced with the recent regional restructuring which elevated India to play central role by being integrated into the Middle East, East Asia & Oceania Region and acting as the hub of the new “India, Middle East, East Asia & Oceania Region," Yoshimura said.
"Today’s MOU signing marks a pivotal point as we stride into the next phase of growth in the country enabling us to contribute to enriching lives with qualitative mobility solutions locally and globally," Yoshimura added.
Manasi Tata, Vice Chairperson, Toyota Kirloskar Motor, said, “For us at the company, the last 25 years of operational excellence from our Bidadi Plant has created the foundation for the future direction of Toyota in India. Our strategic focus on “Make in India” and “Skill India” will enable us to implement sustainable, long-term growth strategy which will enable us to offer cleaner greener mobility solutions to our customers and act as a catalyst towards Government’s roadmap of “Viksit Bharat 2047”."