“After Covid, the market recovery is very strong (in India) in comparison to other countries so we believe demand itself is very strong in India,” said a business official.
Toyota Motor Corporation, a Japanese automaker, has begun the process of increasing production capacity in India, with two facilities operating at full capacity, a senior company official said on Thursday.
Toyota Motor Corporation Board Member and Executive Vice President Yoichi Miyazaki revealed the news to the media on the sidelines of the Japan Mobility Show here, saying the business had reached full factory capacity in India.
“We have started a discussion (on the matter),” he responded when asked if the corporation is considering taking action.
He claims that demand for autos, particularly higher-end models, has increased in India since Covid.
“After Covid, the market recovery is very strong (in India) in comparison to other countries so we believe demand itself is very strong in India,” said a business official.
Toyota Kirloskar Motor, situated in Bengaluru, is a joint venture between Toyota Motor Company and the Kirloskar Group that runs two facilities with a combined manufacturing capacity of 3.42 lakh vehicles per year.
With increased demand resulting in high wait times for some items, the carmaker is now considering to establish a third facility in India.
Miyazaki believes that the steady growth in acceptance of larger automobiles in the Indian automotive industry is a favorable indicator for the carmaker.
When asked if the shift in the Indian auto industry from small vehicles to higher segments made the market more appealing for Toyota, he stated, “With the strength of higher segments going up in the Indian market, it tells us it is now Toyota’s time.” This year, TKM has witnessed a significant surge in demand for its models.
During the April-September period, sales increased by 35% to 1,23,939 units, up from 91,843 units in the same time last year.
Within the Bidadi property in Karnataka, the carmaker has two factories that produce various product lines. One plant began production in December 1999 and manufactures the Innova Hycross, Innova Crysta, Fortuner, and Legender. It has an installed capacity of 1.32 lakh units per year.
The second facility on the same location, with an installed capacity of 2.10 lakh units, manufactures vehicles like as the Camry Hybrid, Urban Cruiser Hyryder, and Hilux.
In December 2010, the facility began production. The firm also distributes models such as the Glanza and Rumion, which are sourced from Maruti Suzuki India as part of Suzuki and Toyota’s global alliance. It also imports Vellfire and LC 300 as fully assembled units (CBU).
TKM started a third shift at Bidadi earlier this year to increase manufacturing capacity by around 30% and reduce waiting times for specific models. The business invested about Rs 90 crore to update the existing infrastructure and hired over 1,500 workers for the plant’s third shift.
