Japanese Automobile Manufacturer Signs MoU with Karnataka Government for Expansion of Manufacturing with Third Plant, Aiming for 100,000 Units Annual Production; First Model Expected in 2026.
Under the MoU, Toyota Kirloskar Motor (TKM) will invest an additional Rs 3,300 crore to establish its third production facility in Bidadi, capable of producing 100,000 units annually and located about 35km from Bengaluru. This expansion is expected to create job opportunities for around 2,000 people. The existing Toyota facilities in Bidadi currently produce approximately 400,000 units each year. The new plant, set to be operational by 2026, will increase Toyota’s total manufacturing capacity by about 30 per cent. This development follows Toyota’s 25-year presence in India.
The upcoming plant will primarily manufacture a new three-row SUV, a longer variant of the internationally available Corolla Cross, known as the 340D. Toyota plans to manufacture around 60,000 units of this model annually, with a projected launch by 2026.
The MoU was formally signed today by Karnataka’s Chief Minister Siddaramaiah and Toyota Kirloskar Motor’s MD and CEO Masakazu Yoshimura, in the presence of Karnataka’s Deputy Chief Minister DK Shivakumar, the Minister for Large & Medium Industries and Infrastructure Development M B Patil, and Kirloskar Systems’ Chairperson and MD, Ms Geetanjali Kirloskar.
Chief Minister Siddaramaiah expressed pride in hosting Toyota’s manufacturing plants and appreciated the company’s ongoing investment in Karnataka, highlighting Toyota’s significant presence in the state since 1997.
Last year, Toyota Group, including Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts (TKAP), signed an MoU with the Karnataka Government, committing Rs 4,100 crore to reduce CO2 emissions, promote electrification and support the shift towards greener technologies. TKAP exemplifies India’s role as a global manufacturing hub, focusing on mass electrification for domestic and export markets.
Deputy Chief Minister DK Shivakumar remarked that Toyota’s additional investment in Karnataka is a major step towards achieving the region’s goal of becoming a leader in Future Technology and Advanced Manufacturing, aligning with the Industries and Commerce Department’s vision for sustainable growth.
B Patil, Karnataka’s Minister for Large and medium Industries and Infrastructure Development, noted that Karnataka’s position as a leader in EV investment and policy, including a dedicated EV policy launched in 2017 and updated in 2021, has attracted Rs 25,000 crore in investments and registered approximately 200,000 EVs, reshaping the state’s mobility landscape.
He added that the Government is introducing a new clean mobility policy to establish Karnataka as a hub for EV manufacturing. This initiative seeks to attract Rs 50,000 crore in investments across the EV value chain, create about 100,000 new jobs, and build a comprehensive EV ecosystem in the state.
