BENGALURU: Japan’s Toyota Motor on Tuesday said it will invest nearly $400 million to set up a third manufacturing facility in India as it looks to meet surging demand for its vehicles.
The new plant, which will create 2,000 new jobs and produce over 100,000 units annually, would take Toyota’s overall capacity to 410,000 units per annum.
The plant would also be the world’s largest automaker’s first capacity expansion in over a decade.
Reuters in September was the first to report Toyota’s plans for setting up a third plant in the southern state of Karnataka, where it already has two plants.
“Toyota continues to be highly positive on the Indian market,” Masakazu Yoshimura, MD and CEO of local unit Toyota Kirloskar Motor, said in a statement.
The expansion offers the potential to grow in the supplier ecosystem further, Yoshimura added.