Toyota Kirloskar Motor Private Ltd (TKM), the Indian subsidiary of Japanese auto giant Toyota Motor Corporation, announced that it has decided to increase its investment at its upcoming second car manufacturing plant near Bangalore to Rs 3,200 crore.
Earlier, the company had made a decision to invest around Rs 1,647 crore for buildings and basic equipment for the second plant. Now, an additional investment of Rs 1,553 crore would be pumped in for both general purpose and specialised equipment necessary for manufacturing compact cars in the new plant, a statement from the company said.
TKM is building its second plant at its factory complex in Bidadi village near Bangalore where the company has its existing manufacturing facility that currently produces Innova and Corolla. Toyota?s second plant would primarily produce compact cars and also the Corolla.
TKM?s second plant is scheduled to start rolling out compact cars in 2010, with an annual production capacity of around 1,00,000 vehicles. The aim is to meet the broad needs of customers in India, where motorisation is expanding rapidly, TKM said.
After the commencement of production in the second plant in 2010, the two TKM plants will have a combined annual production capacity of around 1,60,000 vehicles. Toyota holds 89% of stake in TKM while the remaining 11% is owned by the Kirloskar Group.