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Maruti Suzuki To Invest $1 Billion Into Toyota Plant In Karnataka's Bidadi

JAVED SAIFI | 0
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| August 5 , 2018 , 13:50 IST

Giant car manufacturer Maruti Suzuki India Limited has decided to invest more than $1 billion into Toyota plant in Bidadi, Karnataka, media reported on Saturday.

The investment is aimed to boost the car manufacturing capacity of both the companies at the plant.

In an interview with Deccan Herald, Takayuki Kitagawa, Consul-General of Japan said the agreement regarding the collaboration of both the companies to produce cars together was announced in April 2018 in New Delhi.

“Toyota's Bidadi plant's capacity is three lakhs per annum and the company is now availing only half of it. There is an ideal capacity of 1.5 lakh at the plant and Maruthi will make further investment to manufacture their cars at the facility,” he said to DC.

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Maruti Suzuki with over 50 percent market share has three plants in India. Bidadi plant will be the fourth plant for the company and with this much investment, the company will be able to enhance its production capacity target by 2030.

The company wants to maintain its dominance in the Indian market, thereby it is working to enhance its car making ability with Toyota.

Kitagawa also said, "Toyota had invested $3 billion in Bengaluru 20 years ago. Here Maruti will have to make further investment to further refurbish the manufacturing facility for its requirement."

Under the agreement, the Maruti Suzuki will get Toyota's Corolla to rebody and rebadge while Toyota will use Maruti Suzuki Vitara Brezza and Baleno for its own rebodied and rebadged versions.