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Bangalore, July 31, 2008 - Toyota Kirloskar Motor (TKM) announced today that it held a Foundation Stone Unveiling Ceremony to signal its intention of commencing construction in August 2008 of its second plant in India. The ceremony was held on the premises of TKM's plant at Bidadi, on the outskirts of Bangalore.

The Hon'ble Chief Minister of Karnataka, Mr. B. S. Yeddyurappa unveiled the foundation stone along with Mr Akira Okabe, Senior Managing Director, Toyota Motor Corporation (TMC).

Mr. Okabe expressed the company's aim in the following way: "We hope to establish in Karnataka a firm base for our monozukuri culture - which combines production technologies based on the Toyota Production System and human resources development - and to be able to contribute to the growth of India through activities in Karnataka."

The second TKM plant is scheduled to have an annual production capacity of 100,000 vehicles when it begins operation in 2010, and it will produce passenger vehicles, including a new compact vehicle. Toyota is seeking to emphasize the role of nature in creating production sites that are in harmony with their natural surroundings by promoting sustainable plant activities and pursuing the following initiatives:

• Reducing energy consumption through the introduction of production technology with a lower level of CO2 emissions.
• Using renewable energy sources, such as biomass, solar and wind power.
• Striving for a harmonious coexistence with the local community through activities such as planting trees at our factories.
• Reducing environmental impact through measures such as introducing a wastewater recycling system, using water-borne paints, and achieving zero landfill waste.

TKM is a joint venture company for automobile production and sales established on the outskirts of Bangalore in 1997 by Toyota Motor Corporation and the Kirloskar Group. Currently, TKM produces the Corolla and the IMV series Innova (MUV), with annual production of 52,000 vehicles in 2007 (an 18% year-on-year increase).

Toyota is expanding its local production in India, and actively investing to manufacture its products in the country. In the future, TMC will continue to develop an optimal production network on a worldwide scale from the perspective of providing 'the right vehicle in the right place at the right time', while also contributing to the development of the automotive industry and overall economy in India.

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Outline of TKM Plant

Company name	Toyota Kirloskar Motor Private Limited
Location	Bangalore (Bidadi), Karnataka State
Establishment	October 1997 (start of production: December 1999)
Managing Director	Hiroshi Nakagawa
Equity participation	TMC: 89%, Kirloskar Group: 11%
Land area	Approx. 420 acres (approx. 1,700,000m2)
Annual production capacity	Approx. 60,000 units (After second plant is operational, approx. 160,000 units)
Products	Corolla, Innova (second plant: new compact vehicle)
2007 production results	52,000 units
Number of employees	Approx. 3,000 (as of July 2008)