Toyota Kirloskar Motor to invest 20000 crore to set up new automobile plant in Maharashtra

The Government of Maharashtra and Toyota Kirloskar Motor signed an MOU according to which, the later will invest 20000 crore to set up an automobile manufacturing plant in Chhatrapati Sambhajinagar.

According to Deputy Chief Minister Devendra Fadnavis called it a ‘game changer’ and said that this venture will create over 8000 jobs in Marathwada and the rest of Maharashtra. Chief Minister, Eknath Shinde and Deputy Chief Minister Ajit Pawar were also present during MOU signing. For this, Toyota Kirloskar Motor will be provided with 850 acres of land in AURIC, Chhatrapati Sambhajinagar.

Earlier Fadnavis told TOI, “Toyota Kirloskar Motor’s decision to invest in Maharashtra assumes importance. Once again, it has been established that Maharashtra is a favoured destination for investors”.

The Deputy Chief Minister Devendra Fadnavis had been following up with Toyota Kirloskar Motor for the investment in Chhatrapati Sambhajinagar, which will help in the development the Marathwada region.

The new unit will generate direct employment for 8,000 people, officials said, and in addition, 16,000 persons will get employment in ancillary units, so it will create 24,000 jobs in all, through primary, secondary and tertiary employement.

Govt of Maharashtra and Toyota Kirloskar Motor signed an MOU according to which, the later will invest 20000 crore to set up an automobile manufacturing plant in Chhatrapati Sambhajinagar, creating over 8000 jobs! #maharashtragovernment #Maharashtra #Maharashtranews #Toyota pic.twitter.com/6iuJPU1IKX

— Punenow News (@itspunenow) July 31, 2024

The unit will manufacture nearly 4 lakh vehicles per year and will start production in three years. So far, TKM has been concentrating on investment in Karnataka. It has two units at its existing facility in Bidadi in that state, and in November 2023, it announced plans to set up its third plant there which would commence production by 2026.
For the first time, TKM will be getting a facility in Marathwada. “It is the beginning of the industrial development of the region, particularly in the automobile sector,” an industries department official said.
The official said TKM will manufacture both electric vehicles and ICE (internal combustion engine) vehicles. “We feel once the unit starts manufacturing, it will change the region’s economy,” he said.

Any automobile manufacturing unit creates employment in three tiers. Primary, secondary and tertiary. Primary employment is the direct employment generated by employing people in the unit. Secondary employment is generated at the ancillary units that set up their manufacturing near the automobile manufacturing unit. Tertiary employment are the employment opportunities created for associated services such as transportation, shops, hotels, and other services that the primary and secondary employees and their families will require. Thus automobile units are generally considered as catalysts to development and upliftment of the local economy.

However, environment concerns and the land acquisition process may raise some problems but if all the stakeholders safeguard each others’ interest, a win-win situation could be created.