Toyota plans to produce EV components in India, mulls ₹4,800 crore investment
Toyota group firms, including Toyota Kirloskar Motor (TKM) are working on a plan to invest about ₹4,800 crore in Karnataka for local production of powertrain parts and other components of electric vehicles. While TKM and Toyota Kirloskar Auto Parts (TKAP) will invest ₹4,100 crore, Toyota Industries Engine India will pitch in with another ₹700 crore.
Both TKM and TKAP have signed a Memorandum of Understanding (MOU) with the Karnataka government in this regard. The announcement coincides with automaker's 25 years of presence in India.
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The MoU was exchanged between Karnataka chief minister Basavaraj Bommai and TKM in presence of minister of large and medium industries Murugesh R Nirani and senior government officials. "Toyota Group and TIEI together would be making an investment of around ₹4,800 crore. We are doing this in the spirit of 'go green, go local' and our aim is to contribute to our country's mission of faster reduction of carbon emissions and make in India," TKM executive vice president Vikram Gulati told PTI.
To produce the components, the automaker plans to utilise its existing facilities in the state. "We would be aiming at both domestic and global markets. We are moving towards a completely new area of technology which is electrified powertrain parts," Gulati said. The timeline for the starting of the production is not yet finalized but the company is looking at near-term.
Besides boosting local manufacturing, the development will also increase employment opportunities and local community development. "We are looking at around 3,500 new jobs. Of course, as the supply chain system builds, we expect much more to come in later," Gulati added.
The Toyota group companies have already invested ₹11,812 crore in the country and employ more than 8,000 people at present.
(with inputs from PTI)