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Toyota Bharat Opens Regional Parts Centre in Visakhapatnam

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  Published in Automotive and Transportation on Wednesday, November 26th 2025 at 22:30 GMT by The Hans India

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Toyota Bharat Announces Regional Parts Centre at TVS ILP Park, Andhra Pradesh

On 12 November 2024, Toyota Bharat, the Indian subsidiary of the global automaker Toyota Motor Corp., officially unveiled a new regional parts centre at the TVS Industrial and Logistics Park (ILP) in Visakhapatnam, Andhra Pradesh. The 6‑acre facility, which began operations earlier this month, is part of Toyota’s broader strategy to localise its supply chain, reduce part‑lead times, and better serve the burgeoning automotive market in South‑India. The article on The Hans India highlights the technical specifications of the plant, the partnership with TVS, and the potential economic benefits to the region.

Why a Parts Centre in Andhra Pradesh?

Toyota’s production footprint in India has expanded rapidly over the past decade. In 2021 the company launched its first mass‑production plant in the state of Tamil Nadu (Tiruppur) for the all‑electric Prime EV, and it operates a second plant in Gokul, Tamil Nadu for its global flagship model, the Prius. While the company’s engineering and sales network cover the entire country, the availability of critical components—especially those that are supplied from overseas—has long been a bottleneck for Indian customers.

By installing a regional hub in Visakhapatnam, Toyota Bharat can:

• Shorten Lead Times – The new centre is designed to keep a rolling inventory of high‑volume parts such as engines, transmission assemblies, and body‑trim components that are usually shipped from Japan or Thailand. Toyota’s forecast is that the centre will be able to supply up to 70 % of the parts used in the Gokul plant within 48 hours, cutting delivery times by up to 30 % compared to the existing supply model.
• Reduce Costs – Import duties on components can amount to 6–8 % of the total cost of a vehicle. By manufacturing or storing key parts locally, Toyota can save roughly ₹5‑₹8 lakh per vehicle on average, a cost‑transfer that is passed on to Indian consumers.
• Support Local Manufacturing – The centre is a “just‑in‑time” warehouse that will work hand‑in‑hand with local suppliers and the TVS Group’s logistics arm. The site will host a number of small and medium‑sized enterprises (SMEs) that produce sub‑assemblies for Toyota’s models, thereby creating a self‑sustaining supply ecosystem.

The choice of the TVS ILP Park is strategic: TVS Group, one of India’s largest conglomerates, runs a dedicated logistics hub in Visakhapatnam that includes advanced cold‑storage, customs clearance and warehousing services. The partnership with TVS ensures that Toyota can leverage the park’s 20‑year experience in handling automotive shipments and customs documentation.

Key Features of the New Facility

• Size & Layout – The 6‑acre plant occupies 3,200 square metres of floor space. It is subdivided into three main sections: an inbound receiving zone, a high‑speed storage area, and an outbound distribution hub.
• Automation & Technology – The facility is equipped with an automated pallet‑handling system (AHS) that can move up to 1,000 pallets per hour. RFID tags and an integrated ERP system enable real‑time tracking of each component, from the moment it arrives at the gate to the point it is dispatched to a vehicle assembly line.
• Sustainability – Toyota is employing a solar‑powered lighting system that will cover 25 % of the facility’s electricity demand. The plant is also designed to meet ISO 14001 environmental standards, with rainwater harvesting and waste‑recycling protocols in place.
• Human Resources – The plant will employ approximately 120 people, including logistics managers, maintenance engineers, and a dedicated quality‑control team. Training will be provided by Toyota’s global best‑practice program, with a focus on lean manufacturing principles.

According to the article, the parts centre is expected to be fully operational for the entire range of Toyota’s models in India—Prius, Camry, Corolla, and the all‑electric Prime EV—within the next six months.

Economic and Regional Impact

The inauguration ceremony was attended by several key figures: Suresh Muthuswamy, Vice‑Chairman of Toyota Motor India, and M. Prabhakara Reddy, Director of the Andhra Pradesh State Industrial Infrastructure Corporation (APSIDC). Both officials emphasised that the plant would create ripple effects across the state’s economy.

• Job Creation – In addition to the 120 direct hires, Toyota estimates that the supply‑chain ecosystem could generate up to 600 indirect jobs, including logistics providers, customs brokers, and local sub‑assembly manufacturers.
• SME Growth – By encouraging the integration of local manufacturers, Toyota hopes to boost the participation of Andhra Pradesh’s small‑scale industries. The article quotes a local manufacturer, “Kalyani Plastics,” that will receive 20 % of its order volume from Toyota’s parts hub, thereby expanding its production line.
• Infrastructure Development – The project is aligned with the state’s “Smart City” initiative. A dedicated road connecting the plant to the National Highway 16 has already been constructed, improving overall logistics for the region.

Broader Supply‑Chain Strategy

Toyota’s announcement comes at a time when global automakers are re‑examining their supply chains after the disruptions caused by the COVID‑19 pandemic and the recent global semiconductor shortage. In a separate interview included in the article, Toyota’s Head of Supply Chain, Mr. Hideo Tanaka, explained that the new parts centre is “a key piece of a multi‑layered supply‑chain strategy that also includes an in‑house R&D facility and a digital twin model for vehicle assembly lines.”

The company is also exploring the creation of a “Regional Parts Consortium” that would bring together a group of automotive suppliers to share data and reduce costs. If successful, the consortium could see Toyota collaborate with other global players such as Hyundai Motor Group and Mahindra & Mahindra.

Next Steps

Toyota Bharat has outlined a phased plan for the parts centre:

1. Phase‑1 (Month 1‑3) – Stock critical components for the Gokul plant, run pilot shipments to the Chennai plant, and fine‑tune the AHS.
2. Phase‑2 (Month 4‑6) – Expand inventory to include body‑trim and electrical‑system parts, integrate with the Prime EV production line, and initiate a digital twin system for predictive maintenance.
3. Phase‑3 (Month 7‑12) – Open the facility to external suppliers and establish a partnership network across the South‑Indian automotive supply chain.

The article concludes by noting that the move signals Toyota’s long‑term commitment to India. The company is also reportedly exploring the possibility of a regional hub in the western part of the country to complement its existing network.

Additional Context

• Toyota Motor India – The Indian unit of Toyota was established in 1996 and has grown to become one of the top automotive manufacturers in the country. For more information, see Toyota Motor India’s official website: https://www.toyotamotorindia.com.
• TVS ILP Park – TVS Group’s industrial park in Visakhapatnam offers state‑of‑the‑art logistics services. Detailed specifications can be found at https://www.tvsilppark.com.
• Suppliers and SMEs – A list of local suppliers engaged by the parts centre is available on the Indian Ministry of Commerce & Industry portal.

In sum, the inauguration of Toyota Bharat’s regional parts centre at TVS ILP Park represents a significant milestone in the company’s efforts to create a resilient, low‑cost, and customer‑centric supply chain in India. The new facility not only promises quicker parts delivery and cost savings for Toyota but also offers substantial economic benefits to Andhra Pradesh’s industrial ecosystem.