Toyota to invest $624m to make EV parts in India
Toyota Group plans to invest 48-billion rupees (roughly $624m or R10,085,849,280) to make electric vehicle (EV) components in India as the Japanese carmaker works toward carbon neutrality by 2050.
Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts signed a memorandum of understanding with the southern state of Karnataka to invest 41-billion rupees (roughly R8,563,047,829), the group said on Saturday. The rest will come from Toyota Industries Engine India.
Toyota is aligning its own green targets with India’s ambitions of becoming a manufacturing hub, though the switch to clean transport in the south Asian nation is slower than other countries such as China and the US. Expensive price tags, lack of options in electric models and insufficient charging stations have led to sluggish adoption of battery vehicles in India.
“From a direct employment point of view, we are looking at around 3,500 new jobs,” Toyota Kirloskar executive vice president Vikram Gulati told the Press Trust of India in an interview.
“As the supply chain system builds, we expect much more to come in later.”
He said the company would be moving toward a new area of technology – electrified powertrain parts – with production to start in the “very near-term”.
Indian automakers could generate $20-billion (roughly R323,218,000,000) in revenue from electric vehicles between now and fiscal year 2026, according to a forecast by Crisil. By 2040, 53% of new automobile sales in India will be electric, compared with 77% in China, according to BloombergNEF.
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