Toyota jacks up funds for 2nd plant

Written by Jaishankar Jayaramiah | Bangalore | Updated: May 1 2010, 04:52am hrs
Toyota Kirloskar Motors (TKM), the Indian subsidiary of Japanese auto giant Toyota Motor Corporation, has increased its total investment in its new manufacturing facility near Bangalore to Rs 3,000 crore, from Rs 1,300 crore proposed initially. The development followed after the Karnataka government had allotted an additional 40 acre for the facility, said Murugesh R Nirani, minister for large and medium industries.

The auto major would utilise the additional land to accommodate ancillary units at the project site, the minister said. The state government had offered around 432 acre to TKM, in which Toyota has an 81% stake. Kirloskar Group holds the remaining stake in the company, which set up its manufacturing facility near Bangalore a decade back.

In the same factory complex, the company is now setting up its second manufacturing facility to assemble small cars. It has also allotted space to around seven auto component companies to set up their units and supply components for Toyota vehicles. According to industry sources, the company has identified Jai Bharat Maruti, Stanzen Toyotetsu India, Wheels India of TVS Group, Asahi Glass, Bundy India, Tata Johnson Controls Automotive and Supreme Greaves as on-site component suppliers.

Currently, Toyota makes Innova, Corolla and Fortuner at its existing plant.