Economic Times reported that Toyota Motor is planning a third greenfield plant to meet any spurt in demand in coming years.
It operates a majority owned Indian subsidiary, Toyota Kirloskar Motor Private Limited which is looking at expanding to Hosur in Tamil Nadu. Hosur is just few kilometres away from its two current plants at Bidadi, in the suburb of Bangalore. The two plants would reach a combined capacity of 3.1 lakh cars by January 2013.
Toyota is one of the fastest-growing car companies in the otherwise slowing Indian domestic market. Its sales grew 34% to 73,148 cars in the first five months of the fiscal. The company is aiming at an annual production of around 4 lakh vehicles by 2015-16 that would take its market share to around 10%.
Toyota, which entered India a decade back, sold 1,60,203 vehicles in the previous fiscal to become India's fifth largest carmaker. Auto sales remained subdued during these months and grew by a marginal 0.86%, the lowest in the past three years.
TKM has already made public its intention to scale investments for a new greenfield diesel plant in India after investing INR 500 crore to set up a petrol engine plant and expanding transmissions capacity at its Bangalore facility.
The company has been vying for higher localisation through a local facility to bring down costs in the light of adverse currency fluctuations and mounting import bill for critical auto components currently shipped from Thailand and Japan.
Source - Economic Times