Maruti Suzuki is planning to invest over $1 billion in Toyota's manufacturing plant at Bidadi near Bangalore. According to media reports, Toyota’s Bidadi plant was visited by officials from Maruti and Toyota to further discuss developments for both companies.
The annual capacity of the factory stands at 3 lakh units but currently, it’s functioning at only half its capacity. The investment would most likely be used to refurbish the facility and restructure production lines to produce Maruti Suzuki models with the remaining capacity. The production is expected to start by 2022.
This move is expected to increase employment opportunities in the region as Maruti suppliers will also set up manufacturing units in the Japanese Industrial township of Tumakuru. When it comes to manufacturing units in India, Maruti currently has three in operation. The company also plans to boost production capacity by almost 2.5 million units by 2030.
Earlier in the year, Toyota and Suzuki had agreed to expand the scope of their collaboration and discuss new joint projects in the fields of technological development, vehicle production, and market development. Suzuki agreed to supply premium hatchback Baleno and compact SUV Vitara Brezza to Toyota, while Toyota will supply sedan Corolla to Suzuki.
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