The world’s biggest car manufacturer, Toyota, has announced an investment of ₹4800 crore rupees ($624 million) in India. Like other Japanese car manufacturers, Toyota also plans to be carbon neutral by 2050. While the Japanese government seems bullish on gasoline-powered hybrid cars, Toyota is gearing up to provide electric cars to the rest of the world. There would be a strong requirement for electric vehicle parts and Toyota is aiming to manufacture electric vehicle components in India.
Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts have signed an MoU (Memorandum of Understanding) with the Karnataka state government to invest ₹4100 crore rupees. The remaining ₹700 crore rupees investment will come from Toyota Industries Engine India.
Toyota Kirloskar Executive Vice President Vikram Gulati in an interview with PTI said, “From a direct employment point of view, we are looking at around 3,500 new jobs. As the supply chain system builds, we expect much more to come in later.”
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A report by Bloomberg suggests that by 2040, 53 percent of new automobile sales in India will be all-electric vehicles. Toyota sees this as an opportunity to introduce their hybrid and electric cars in India. The firm also has a joint venture with India’s largest car manufacturer, Maruti-Suzuki.
Currently, Toyota sells rebranded Maruti-Suzuki cars, but will soon be coming out with a gasoline-powered hybrid SUV developed for India. Moreover, you can expect a Maruti Suzuki version of this hybrid SUV. Furthermore, Maruti Suzuki is also jointly developing an EV with Toyota, which should be in the market by 2025. The local manufacturing of components will enable them to price their vehicles competitively and also reduce maintenance costs.