Toyota Kirloskar Motor (TKM), the Indian arm of the Japanese automotive giant, has signed a significant agreement with the Maharashtra government to explore the establishment of a new greenfield manufacturing facility in Chhatrapati Sambhajinagar, formerly known as Aurangabad. The proposed investment for this project is Rs 20,000 crore. 

The agreement was formalized in the presence of Maharashtra Chief Minister Eknath Shinde and TKM Managing Director and CEO Masakazu Yoshimura. Chief Minister Shinde highlighted that the facility will be capable of producing 400,000 electric and hybrid vehicles annually and is expected to create 8,000 direct jobs and an equal number of indirect jobs, significantly impacting the automobile sector. 

Deputy Chief Minister Devendra Fadnavis announced that 850 acres have been allocated for this manufacturing site at AURIC (Aurangabad Industrial City) in Chhatrapati Sambhajinagar. 

This development follows recent moves by South Korean automaker Hyundai Motors India, which acquired the Talegaon facility from General Motors and is expanding its operations. 

Since its inception in India in 1997, TKM has progressively expanded its footprint. Last year, TKM revealed plans to invest Rs 3,300 crore in Karnataka to establish a third plant in Bidadi, near Bengaluru. This expansion will increase TKM’s production capacity by 100,000 units annually, enhancing the local supply ecosystem and creating over 2,000 direct jobs. By 2026, the Bidadi plant’s annual production capacity is expected to reach 442,000 units. 

Currently, the Bidadi facility has an installed capacity of 342,000 vehicles per year and employs 6,000 people, with over 200 suppliers supporting the plant. Last year, TKM initiated three-shift manufacturing at Bidadi to boost output by 30 percent and expanded its capacity by 32,000 units. 

In FY24, TKM achieved record sales of 263,512 units, a 48 percent increase from the previous year. The company noted that sport utility vehicles and multi-utility vehicles, including models like the Innova Crysta, Fortuner, and Urban Cruiser Hyryder, were major contributors to this growth. 

Yoshimura emphasized Toyota Motor Corporation’s belief in India’s potential to become a global manufacturing hub for sustainable mobility solutions. This vision is reinforced by India’s recent regional restructuring, integrating it into the “India, Middle East, East Asia & Oceania Region” as a central hub. Swapnesh Maru, Deputy Managing Director, affirmed that the new greenfield plant aligns with TKM’s ongoing commitment to advancing sustainable mobility in India.