Toyota Kirloskar to pump in Rs 32 bn in new plant

Automotive giant Toyota Kirloskar Motor is pumping in a capital investment close to Rs 32 billion in its second plant in India. The second plant, which is said to be getting ready to go stream in year 2010, will boast of an initial annual production capacity of around 100,000 vehicles.

The company has said that the second plant will churn out passenger vehicles, including the Corolla, as well as a new compact vehicle. Toyota Kirloskar is said to be targeting to meet the broad needs of customers in India, where most of the population are looking at owning a car.

It is expected that when the second plant also goes on stream, the company will have a greater role in in TMC’s sustainable plant activities. Toyota Motor Corp is looking at growing local production in India, and is said to be pumping in money into India. It aims at sprucing up operations and presence in India in its bid to play a role in the growth of India’s automotive industry.

The company had earlier mulled over investing around Rs 16.47 billion for the buildings and basic equipment for the second plant. Now it has gone ahead and decided to invest approximately Rs 15.53 billion more. The amount is to be pumped in for general-purpose and specialized equipment necessary for manufacturing a new compact vehicle, the company sources added.

Once production begins at the second plant in 2010 , the two TKM plants will have a combined annual production capacity of around 160,000 vehicles, sources added. The company, a joint venture established on the outskirts of Bangalore in October 1997 by Toyota Motor Corp and the Kirloskar Group, as of now makes model such as the Corolla and the Innova, with annual production in 2007 of 52,000 vehicles.