In a major deal, Toyota Kirloskar Motor Pvt Ltd (TKM) signed an MoU with the Maharashtra government on Wednesday to establish a new manufacturing plant in the state, with an investment of approximately Rs 20,000 crore.

The proposed investment, once finalised, is expected to be spread over several years and could significantly contribute to job creation and economic growth in the region. The company stated that the greenfield manufacturing facility will likely be established in Chhatrapati Sambhaji Nagar.

The project is expected to transform Marathwada’s economy. The facility will cover approximately 850 acres.

Maharashtra Chief Minister Eknath Shinde, along with Deputy Chief Ministers Devendra Fadnavis and Ajit Pawar welcomed TKM’s team, including Masakazu Yoshimura, Managing Director & Chief Executive Officer and Manasi Tata, Vice Chairperson.

The strategic location is expected to enhance TKM’s ability to meet business and logistical requirements more efficiently, enabling the company to serve broader markets both within the country and internationally. The company said this is anticipated to provide significant advantages and growth opportunities.

“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 by the recent regional restructuring which elevated India to play a central role by being integrated into the Middle East, East Asia and Oceania Region and acting as the hub of the new “India, Middle East, East Asia & Oceania Region”,” Masakazu Yoshimura, Managing Director and Chief Executive Officer of TKM and Regional CEO at Toyota Motor Corporation (TMC) said.

The MoU signing marks a significant milestone for the next phase of growth in the country, with a focus on providing qualitative mobility solutions both locally and globally, he said.

Last year, TKM announced an investment of approximately ₹3,300 crore for a new third plant at its Bidadi (Karnataka) facility. This expansion, aimed at supporting the Make-in-India initiative, will increase TKM’s production capacity by 100,000 units annually, contributing to the growth of the local supplier ecosystem and creating over 2,000 direct jobs in Karnataka.

With the third plant set to become operational in 2026, TKM’s annual production capacity at Bidadi is expected to rise to 4.42 lakh units, the company said.

Additionally, in 2022, Toyota Group companies, including Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts (TKAP), signed an MoU with the Karnataka government to invest ₹4,100 crore. This investment aims to reduce CO2 emissions, enhance electrification, and accelerate the shift towards greener technologies.

Toyota stated that since beginning operations in Karnataka in 1999, TKM and its group companies have invested over Rs. 16,000 crore and created nearly 86,000 jobs across the entire value chain, including suppliers and dealer partners. This underscores its philosophy of making in India not just for India, but for the world. Over the past 25 years, the company has made cumulative export contributions of approximately Rs. 32,000 crore.

“Under the project, four-lakh electric and hybrid cars are expected to be manufactured every year with an investment of Rs.20,000 crore, generating 8,000 direct jobs and indirect employment for 8,000. This project will revolutionise the automobile sector,” Eknath Shinde, Chief Minister of Maharashtra said.

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