'Karnataka’s Loss, Maharashtra’s Gain': Netizens Express Disappointment As Toyota Switches To Neighbouring State For Setting Up New Facility

In a significant disappointment for Karnataka, automaker Toyota Kirloskar Motor (TKM) has announced plans to establish a new manufacturing plant in Maharashtra with an investment of approximately Rs 20,000 crore.

TKM which is headquartered in Karnataka, operates two manufacturing units located in Bidadi near Bengaluru. In Karnataka, the automaker, along with its group companies, has invested over Rs 16,000 crore and created nearly 86,000 jobs across the entire value chain.

However, in light of the recent announcement, it seems that the company is now looking to expand its horizons beyond the state.

The company has signed a memorandum of understanding (MoU) with the Maharashtra government to explore the development of a greenfield manufacturing facility at Chhatrapati Sambhaji Nagar, TKM stated in a release.

In a social media post on X, Maharashtra Deputy Chief Minister Devendra Fadnavis announced the Rs 20,000 crore investment for the new plant.

"Transforming Maharashtra, Developing Marathwada! Reaffirming its commitment to India; Toyota Kirloskar Motors is set to launch a Green Field Manufacturing Facility in Maharashtra!" he posted.

This is the second major investment Maharashtra has attracted after another Karnataka based company, electric scooter maker – Ather decided to execute a Rs 2000 project in the same AURIC industrial hub.

Announcement of these two projects along with the existing manufacturing facilities in AURIC is expected to help the state government in alleviating the developmental backlog in the impoverished Marathwada region.

Parallelly, the Chief Minister Siddaramaiah led Karnataka government came under fire for losing a significant potential investment to another state.

Former Infosys CFO, T V Mohandas Pai in a post on X stated, "Why did Karnataka lose this investment? Very concerning. Big big blow to us."

Another netizen noted the development as "Karnataka’s loss and Maharashtra’s gain."