The Maharashtra government has formalised a memorandum of understanding (MoU) with Toyota Kirloskar Motor (TKM) to establish a state-of-the-art manufacturing facility at AURIC City, Chhatrapati Sambhajinagar. The project, valued at INR 20,000 crore, is poised to enhance the state’s position as a pivotal player in the burgeoning EV market.
Under the agreement, Toyota will construct a sprawling 850-acre plant dedicated to the production of electric and hybrid vehicles. The facility is anticipated to manufacture approximately 4 lakh vehicles annually, reflecting a major leap in the country’s automotive capabilities. This development is expected to generate around 16,000 jobs, split equally between direct and indirect employment opportunities, marking a substantial contribution to the local economy.
The signing of this MoU follows the recent clearance of projects worth INR 81,137 crore by the state cabinet sub-committee on industry. This move is seen as a strategic effort by the Maharashtra government to counter opposition criticisms regarding the exodus of high-profile projects such as Vedanta-Foxconn and Tata-Airbus from the state. The state assembly elections scheduled for October have heightened the political significance of this investment.
Chief Minister Eknath Shinde hailed the initiative as a transformative milestone for India’s EV industry. He emphasised the state’s commitment to promoting electric vehicles extensively and integrating them into public transport systems. Shinde also noted that 80% of the agreements signed at the Davos summit in the past two years have already been implemented, underscoring the state’s progress in industrial development. Former Chief Minister Devendra Fadnavis described the MoU as a landmark agreement that heralds a new era for Maharashtra’s automotive sector.
He highlighted the project’s potential to drive economic growth in Marathwada and create substantial employment. Fadnavis also pointed to the development of JNPT, which is set to become the largest port in the country, and the establishment of a dry port in Jalna, as integral to the state’s broader economic strategy.
