Toyota plans to pump in group firms 4,800 crore for local production of powertrain parts and other components of electric vehicles in Karnataka. On Saturday, Toyota Kirloskar Motor (TKM) and Toyota Kirloskar Auto Parts (TKAP) signed a Memorandum of Understanding (MoU) with the state government.
Out of the total investment, TKM and TKAP will invest together 4,100 crore while another related company, Toyota Industries Engine India (TIEI) will make the remaining investment 700 crores.
In an interview, TKM Executive Vice President Vikram Gulati told PTI, “Toyota Group and TIEI together will be investing approx. 4,800 crores. We are doing this in the spirit of ‘Go Green, Go Local’ and aim to contribute to our nation’s mission of rapid reduction in carbon emissions and Make in India.”
Meanwhile, during the MoU signing event, TKM Vice President Vikram S Kirloskar said that the development is a very important step in terms of deep reduction in carbon emissions, high job creation, ushering in massive investments to create local manufacturing hubs. Important milestone. Not only for domestic needs but also for advancement in global markets, local community development and innovation.
Apart from driving the local manufacturing ecosystem, the deal will also accelerate job creation and local community development.
The MoU is expected to bring 3,500 new jobs, while with the creation of a supply chain system, Gulati expects “more to come later.”
The group intends to use its existing facilities in the state to produce the components. Gulati said it would aim to cater to both domestic and international markets, while further moving towards an entirely new area of technology which is electrified powertrain parts.
Responding about the time frame for commencement of production, Gulati said that it is going to be ‘very near term’. However, he did not give any specific information.
Highlighting that the group has all the electrified technologies, Gulati said that it will not only meet the consumer requirements but will also be aligned with the national objectives of the government.
He said in the interview, “We believe that electrification is starting. There are still challenges around this, but the key to moving towards rapid electrification will be to take the steps we are taking now. To build local ecosystems.” , local capabilities, local competitiveness and thereby strive to deliver all these technologies at an affordable cost.”
When asked whether the Indian market is now ready for electric vehicles, Gulati said that “If you look at both the demand side and the supply side, a lot of effort is going on… We believe that all technologies, electrified or Others, that help to promote national goals should be promoted in a proportionate manner.”