Toyota Plans To Invest More Than USD 270 Million In India In Next 12 Months.

The Japanese automaker company Toyota issued a statement that they would be investing more than ₹2,000 crores (approximately USD 271 Million) in India towards the electrification of the vehicles. Various automakers are majorly focusing on electrification to provide a sustainable future and meet future potential demands.

“The future of sustainable mobility is strong here in India and Toyota is proud to be part of this journey. We are investing 2000+ crores in electric components and technology for the domestic customer and support. We are committed to the future of India and will continue to put all effort in society, environment, skilling, and technology,” Vikram Kirloskar, vice-chairman of Toyota Kirloskar Motor, the local division of the company, said in a tweet. Prakash Javadekar, India’s Minister of Heavy Industries & Public Enterprises, also clarified that the news of “Toyota company will stop investing in India is incorrect.”

The afore-mentioned statement was issued just after hours when a company’s top executive announced that they are halting the expansion plans owing to the enormous tax on vehicles. On Tuesday, Shekar Vishwanathan, vice chairman of Toyota Kirloskar Motor, said that the high taxes in India has made it difficult for the company to do business and eventually reach out to the consumers. In an interview, he said that “Don’t treat this (auto industry) as a sin good. This is a sector that generates a lot of employment, goodwill, and lots of export potential,” he added.

Recently, Volkswagen also had spoken about the challenges of doing business in the country. Their statement after the company announced the investment of ₹7,900 crores (approximately USD 1.1 Billion) just before the lockdown was announced in the country. In August, Gurpratap S Boparai, MD of Volkswagen‘s India business said that “While clearances are fast for initial investments, it gets difficult to do business thereafter…The ease of doing business has to be expanded to the day-to-day running of companies.”

To clear the company’s state in the Indian market, it issued a statement that said “Toyota Kirloskar Motor would like to state that we continue to be committed to the Indian market and our operations in the country is an integral part of our global strategy. We need to protect the jobs we have created and we will do everything possible to achieve this. Over our two decades of operations in India, we have worked tirelessly to build a strong, competitive local supplier ecosystem and develop strong, capable human resources. Our first step is to ensure full capacity utilization of what we have created, and this will take time, “Toyota Kirloskar Motor, a subsidiary of the company, said in a statement.

Amidst the coronavirus crisis, the auto industry expects the government to be supportive to maintain the industry and employment. The company said that they’re requesting for a viable tax structure which would help the auto industries to revive and thereafter run smoothly.  In 2019, Toyota Tsusho Group and Maruti Suzuki announced a joint venture to support the government’s “Made in India” initiative and to create a better business environment. In addition to this, Toyota will provide electric and hybrid technology to Suzuki.