Toyota Motor Japan revealed plans to invest nearly 400 million US dollars or around 6.2 trillion rupiah to set up a third manufacturing facility in India to meet surging demand.
Toyota’s third factory in India is said to be capable of producing 100,000 thousand vehicles per year and will be increased gradually to 410,000 units per year
“Toyota continues to get a very positive response in the Indian market,” said Masakazu Yoshimura, Managing Director of Toyota Kirloskar Motor (TKM), quoted from Reuters, Friday (24/11/2023).
It is known that Toyota’s sales in India have increased thanks to a global partnership with Suzuki Motor, where the two Japanese car manufacturers sourced several vehicles originally developed by their partners in India.
About two-thirds of Toyota’s production capacity is currently used by Maruti Suzuki to make vehicles for the two automakers as part of their partnership.
This expansion comes as Toyota faces slow growth in markets such as Europe and North America and competition from Chinese auto players in Southeast Asia.
Toyota Develops Hybrid Vehicles
Previously, Toyota also revealed the company’s plans for the Indian market.
As reported by IIFL Securities, the company is said to be developing various technologies, such as hybrid vehicles and electric cars to be introduced in the Indian market in accordance with local government directions.
In India, the company, which is a joint venture partner of the Kirloskar Group, has also started testing a hybrid variant.
“We are testing a hybrid mdoel prototype for the Indian market. “This model has a fuel efficiency of around 40%–50% (compared to gasoline),” said Yoshimura.
However, unfortunately he refused to provide any leaks regarding the launch time.
Other information, Toyota is also reportedly developing solid-state batteries and hydrogen powered vehicles. Both of which are prepared by Toyota to enter the Indian market.