Toyota to Invest USD1.33 billion in its Kentucky plant

The renowned Japanese automaker, Toyota Motor Corp is making an investment of USD1.33 billion in US plant

Japan: Japanese automaker Toyota Motor Corp is spending USD1.33 billion in its Kentucky plant, which is a part of its USD10 billion investment plan in the United States for next five years. Toyota added that this is the biggest single investment ever at its existing plant in the United States. The Kentucky plant also assembles the ‘Avalon’ and ‘Lexus ES 350’. In addition, the automaker further added that earlier, around one-fourth of all Toyota vehicles are produced in the plant in North America.

Furthermore, with this investment, it is also expected to increase in the employment across the region in the coming years. The company is preparing for production of the revamped 2018 ‘Camry’, featuring a new exterior design with upgraded interior with a new engine.

The company also added that this new investment in technology would enhance the operational efficiency of the company and would improve manufacturing flexibility to build advance feature enabled cars with less manufacturing time-frame.

As per TechSci Research, by investing in its Kentucky plant, the company is expected to offer opportunities for many tire companies in the country. Furthermore, it is expected that with this move, the company would eventually make OEM tie ups with leading tire makers with ample opportunities. This investment is likely to boost the OEM demand for tires in the country during the forecast period.

According to a recent report published by TechSci Research, “Japan Tire Market Forecast & Opportunities, 2021”, tire market in Japan is anticipated to cross USD32 billion by 2021. Growing demand for small & mini passenger cars, high vehicle ownership and increasing demand for better quality tires are some of the major factors anticipated to positively influence the country’s tire market over the next five years. In Japan, tire market is predominantly replacement driven owing to large vehicle fleet and high vehicle ownership ratio. Passenger car tire segment dominated the Japan tire market in 2015, and the segment is anticipated to maintain its dominance over the next five years as well owing to increasing penetration and popularity of electric and hybrid cars.