High Demand, Toyota Investments Nearly 400 Million US Dollars For New Manufacturers In India

Vehicle delivery activities at the Toyota factory. (Doc. Global Toyota)

Toyota announced its plans to invest nearly 400 million US dollars in establishing its third manufacturing facility in India, in response to a surge in demand for their vehicles.

Reporting from Reuters on Tuesday, November 21, the company stated that the new plant will create 2,000 new jobs and is expected to produce more than 100,000 vehicles per year, with plans to increase to 410.000 units per year.

The location of this new factory will be in the Karnataka area, southern India, where Toyota currently has two factories.

Masakazu Yoshimura, Managing Director and CEO of Toyota Kirloskar Motor, stated that the factory's expansion could provide the potential for further supplier ecosystem growth in India.

"Toyota continues to show a positive attitude in the Indian market," Yoshimura said.

Toyota's sales in India experienced significant growth thanks to a strategic partnership with Suzuki. Through this partnership, the two of them modified and sold several vehicles that were originally developed together with their respective brands.

Currently, about two-thirds of Toyota's production capacity is used by Maruti Suzuki, their Indian partners, to produce vehicles for both.

Importantly, the decision to build this new plant comes amid slowing economic growth in the European and North American markets. Toyota is also facing intense competition from Chinese manufacturers in Southeast Asia.