Japanese auto major Toyota Motor Corporation has initiated the process to enhance manufacturing capacity in India with two plants running at full capacity in the country, a senior company official said on Thursday.

Speaking to media on the sidelines of the Japan Mobility Show here, Toyota Motor Corporation Board Member and Executive Vice President Yoichi Miyazaki confirmed the development and said the company is reaching full plant capacity utilisation in India.

"We have started a discussion (on the matter)," he said when asked if the company is looking to make fresh investment on capacity enhancement in the country.

He said the demand for automobiles, especially higher segment cars, has surged in India post Covid.

"After Covid, the market recovery is very strong (in India) in comparison to other countries so we believe demand itself is very strong in India," the company executive said.

Bengaluru-based Toyota Kirloskar Motor, a joint venture between Toyota Motor Company and Kirloskar Group, operates two plants with a total production capacity of 3.42 lakh units per annum.

With enhanced demand leading to long waiting periods on certain products, the automaker is now looking to set up a third plant in India.

Miyazaki said it is a good sign for the automaker that the car market in India has started to witness a gradual increase in acceptance of bigger cars.

When asked if the Indian car market moving from small cars to higher segments makes the market more attractive for Toyota, he said, "With the strength of higher segments going up in the Indian market, it tells us it is now Toyota's time." TKM has seen a robust increase in demand for its models this year.

During April-September period, its sales grew 35 per cent to 1,23,939 units from 91,843 units in the same period of last year.

The automaker has two facilities within the Bidadi compound, Karnataka, which rolls out different sets of products. One facility commenced production in December 1999 and rolls out Innova Hycross, Innova Crysta, Fortuner, and Legender. It has an installed production capacity of 1.32 lakh units per annum.

The second plant at the same site, with an installed production capacity of 2.10 lakh units, rolls out products like Camry Hybrid, Urban Cruiser Hyryder and Hilux.

The facility commenced production in December 2010. The company also sells models like Glanza and Rumion which are sourced from Maruti Suzuki India as part of a global collaboration between Suzuki and Toyota. It also imports Vellfire and LC 300 as completely built up units (CBU).

Earlier this year, TKM initiated a third shift at Bidadi to enhance production capacity by about 30 per cent to cut the waiting period for certain models. The company invested over Rs 90 crore to upgrade the existing infrastructure and added about 1,500 workforce for the third shift at the plant.

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