Toyota Motor Corporation, currently the largest auto maker in the industry, is fast tracking clear and definite plans to strengthen the company's stability. They have settled braced foundation in each of their market, of which recently brought success in India. After Toyota thoroughly managed to prosper with their premium cars and multi-utility vehicles in the country, they are now opting to flourish in the truck and bus segment. In relation to that, the company is in negotiation to settle a manufacturing facility for the said commercial vehicles.
Hino was known to be the brand behind Toyota manufacturer's trucks and buses. Since they were able to release 52,684 units sold in Japan and has exported a total of 47,550 units, they have concluded that the segment should be given focus this time. It has the potential to bring forth further success to Toyota. It can be noted that auto makers Volvo and Mercedes have earlier engaged in expanding their interest in the same segment. They are all attracted to the $5 billion market, which was initially dominated by Tata Motors and Ashok Leyland.
A source was reported to have said, "Earlier, Toyota had met Rajasthan government with plan of setting up its small car facility."
"But the company has now decided to manufacture small car in Karnataka, at a brownfield plant at its existing facility in Bidadi," they added. This was in relation to Toyota's current plan of creating a manufacturing facility with the recognition of Rajasthan government.
According to an industry observer, "Any major auto manufacturing facility would require a minimum investment of Rs 1,500 crore." They said "Rajasthan government plans to offer tailor made tax sops to the tune of about Rx 500 crore over a period of time for companies looking to invest in excess of Rs 1,000 crore.
Manufacturing facilities that is part of Toyota's plan is not just for the commercial vehicles, but also for some of their luxury brands such as Lexus, and subsidiary brands such as Daihatsu.
As what was been discussed in an article, "Toyota is in parleys with the Karnataka government for additional land to set-up a housing society for its workforce." This will eventually offer employment in the area and would further increase the availability of the cars in demand. Expansion on quality auto parts and accessories such as production might as well be prevalent to help further boost the on going project.
For now, we would just then be observing the progress as Toyota officials said, "As a policy we don't comment on our future plans."
