Toyota Group invests ₹ 4,800 Crore to make EV components in India
Recently, Toyota Group of Companies inked an MoU with the Government of Karnataka to invest ₹ 4,800 crores on manufacturing activities in the state. The company plans to produce key EV components, not just limited to supplies meant for Toyota brand of vehicles, for both domestic and export markets.
The group includes Toyota Kirloskar Motor (TKM), Toyota Kirloskar Auto Parts (TKAP) and Toyota Industries Engines India Private Limited (TIEI). Of the total announced investment, TKM and TKAP constitute a major investment of about ₹ 4,100 crore.
As part of the MoU, Toyota Group of Companies will systematically invest towards making India a self-reliant manufacturing hub, thus contributing towards the Government's Make in India and Atma Nirbhar Bharat mission. The investments are aimed at promoting greener technologies that will help lower dependence on fossil fuels and mitigate carbon emissions.
Speaking on the development, Vikram S. Kirloskar, Vice-Chairman, Toyota Kirloskar Motor said, "Toyota is committed to enhance the pace of electrification strengthen domestic production with 'Make in India'. Today's MoU is a very important milestone in terms of ushering in large-scale investment to make deeper cuts in carbon emissions, higher employment generation, creating local manufacturing hub not only for domestic needs but also for global markets, local community development and advancement in innovation".
"I believe that such investments are needed to provide technologically viable and economically competitive alternatives to fossil-fuel-intensive technologies in vehicle mobility space. As a part of our philosophy, we always conduct deeper studies, analyse and explore multiple technological pathways that are best suited to optimally achieve the national goals on lowering dependence on fossil fuels, make India truly self-reliant, reducing carbon emissions and creating jobs. Toyota remains committed to serve our nation and the community where we operate", he added.
Toyota had earlier announced that it will invest ₹ 48 billion ($ 621 million) in India to localize the supply chain for electric vehicles, as a part of its broader 2050 carbon-neutrality goals.
He further revealed that Toyota plans to locally produce electric powertrain components used by different low-emission vehicles, including BEVs and hybrids. The company believes that the investments will enable to build local EV supply chain in the country, which can help India's faster and smoother transition to EVs.
Timelines for the production of the EV parts is yet to be finalized, although the company aims to make this happen in near-term, according to news reports.