Click to play videoBangalore: India’s IT hub is all set to become home to Toyota's small car plant.
At the opening ceremony for its second plant, Toyota revealed plans for aggressive growth in the country.
With an initial investment of Rs 1400 crore, the new plant will be operational by 2010.
"Commencing operations with a production of 1,00,000 vehicles in the first year, we aim to double this investment in the future," Senior MD, Toyota Motors, Akira Okabe, said.
Toyota says this doubling of investment could happen by 2014-15. But sources indicate that a significant amount of investment could come in during the next few years.
Toyota has over 430 acres of land near Bangalore and only around 100 acres have been used for the first plant. And even after the second plant is completed, there's still enough capacity for expansion. And this expansion could take place sooner than the initial target of 2015.
Sources reveal Toyota has sought an additional 440 acres of land from the Government, and is waiting for clearance to keep with plans to increase its capacity to 6 lakh vehicles by 2015.
The Government, too, has shown interest.
“I know Toyota has been requesting upgradation of the existing infrastructure around their factory and also to create some new infrastructure. I would like to assure you that once the government has agreed, it would be done well before your next plant gets operationalised," Karnataka Chief Minister B S Yeddyurappa said.
The second plant will have an initial annual capacity of 1 lakh vehicle, with a significant portion accounting towards the small car. Although the management says it has not finalised the design of the small car, changes are already being made to the shop floor of the first plant to accommodate its production.
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