Toyota Motor (TMC) on Wednesday said it would spend about JPY68bn ($US689m) on the second Toyota Kirloskar Motor (TKM) plant in India.
At the end of July, the automaker celebrated the start of construction of the 100,000 units a year plant which will build the Corolla and a new ’emerging markets’ compact vehicle.
Toyota is spending about JPY35bn on buildings and basic equipment and an additional JPY33bn for the equipment needed for the new compact.
The second plant is scheduled to start making cars in 2010.
“The second plant is expected to contribute to TMC’s aim to meet the needs of a broad range of customers as motorisation takes off in India,” the automaker said in a statement.
TMC and the Kirloskar Group established TKM as a joint venture on the outskirts of Bangalore in October 1997. It currently produces the Corolla and the IMV series Innova minivan, a utility vehicle line developed specifically for emerging markets that is also made and sold in Asia.
In 2007, TKM manufactured 52,000 vehicles, an 18% year on year increase. The two TKM plants will have a combined annual production capacity of 160,000 vehicles.
TMC added that it plans to develop “an optimal global production and sales network with a view to match market needs with the right vehicle, in the right place, at the right time.”