Toyota to Invest $624 Million to Make EV Parts in India

Toyota plans to invest INR 48 billion ($624 million) to make electric vehicle components in India, as the Japanese carmaker works toward achieving carbon neutrality by 2050. According to information, Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts have signed a memorandum of understanding with the southern state of Karnataka to invest Rs 41 billion (INR), while 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 U.S. Expensive price tags, lack of options in electric models and insufficient charging stations have led to sluggish adoption of battery vehicles in India. In an interview, Toyota Kirloskar executive vice president Vikram Gulati told the Press Trust of India:

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. The company would be moving toward a new area of technology — electrified powertrain parts — with production set to start in the “very near-term.”

Indian automakers could generate $20 billion in revenue from electric vehicles between now and fiscal year 2026, according to forecast by Crisil. By 2040, 53% of new automobile sales in India will be electric, compared with 77% in China, according to BloombergNEF.

Source: JapanTimes

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