Saar: The idea is to modify the production lines so that Maruti Suzuki can build its cars in Toyota Kirloskar Motor’s second production plant in Bidadi.

It isn’t a secret that the Japanese duo, Suzuki and Toyota, have joined hands to explore collaborations on various fronts for the Indian automotive market. In May this year, they made it official that Toyota Kirloskar Motor’s second production plant in Bidadi will produce cars for Maruti Suzuki. Now, as per a report, it has been revealed that Suzuki will be investing over $1 billion in Toyota’s production facility in the near future. While the investment will primarily be diverted towards retooling the manufacturing plant so that Maruti Suzuki can build its cars there, some of it will also be put to develop a supplier ecosystem in the state.

Toyota Kirloskar Motor currently has two manufacturing facilities, both in Bidadi which is around 35km away from the capital of Karnataka – Bengaluru. The first plant, which went operational in December 1999, has a capacity of 1 lakh units per year. This facility is dedicated to manufacturing two of the bestselling Toyota models in India – Innova Crysta and Fortuner. The facility is also home to CBUs (completely built units) – Prado, Land Cruiser and Prius.

The second facility produces models such as the Etios Liva, Yaris and Corolla Altis. With a capacity of rolling out 2.1 lakh units per annum, this facility was dedicated to producing more mainstream products. Put together, Toyota Kirloskar India has a capacity of producing over 3 lakh cars per annum. However, it is barely using 50 per cent of it. Maruti Suzuki, on the other hand, has three manufacturing facilities and all of them are working overtime to meet the never-ending demand for its products throughout the country.

With Suzuki investing in Toyota’s production facility, it will help India’s largest carmaker to offset the rising waiting periods of its popular products, such as Vitara Brezza and Baleno. As per the agreement between the two Japanese auto giants, both the aforementioned Maruti Suzuki models will be rebadged and restyled for Toyota to sell, whereas the Corolla Altis will be going the other way. Both carmakers will not just sell these cars in India but also export them to other emerging markets around the world.

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Based on the development, it is safe to say that Maruti Suzuki will retool Toyota’s facility to produce Baleno and Vitara Brezza. As mentioned before, the second plant already produces the Corolla Altis. It will be easier for both the carmakers to meet their agreed-upon tie-ups to cross-badge and manufacture the aforementioned models for each other.

Source: Deccan Herald