Toyota will invest 2,000 crore rupees in developing vehicle technology and electric components in India. A news article recently claimed that Toyota was bringing all new investments in the country to a halt.
Toyota To Invest 2000 Crore Rupees In India
Vikram Kirloskar who is the vice-chairman of Toyota Kirloskar Motor clarified in a tweet that they are investing more than 2,000 crore rupees in electric components and technology for the domestic customer and exports. They have done commitment to the future of India and will continue to put all effort into society, environment, skilling, and technology.
Kirloskar’s tweet was in response to a tweet earlier from the Union Minister, Prakash Javadekar.
Prakash Javadekar had earlier tweeted that the news that Toyota Company will stop investing in India is incorrect. Vikram Kirloskar has clarified that Toyota will invest more than 2000 crore rupees in the next twelve months.
Will Toyota Halt Expansion in India?
A Bloomberg article stated while quoting Toyota Kirloskar’s vice-chairman Shekar Viswanathan that Toyota Kirloskar Motor had decided to halt expansion in India. They are blaming the high taxes levied on automobiles in the country for the same.
Vishwanathan has also said that Toyota will not exit India but will also not expand if reforms are not made to the current situation.
There is a slowdown in the automobile industry. This has been further intensified by the coronavirus pandemic. The industry has requested the government support to sustain industry through a viable tax structure.
The Indo-Japanese joint venture sent a clarification for this statement a few hours after the publication of the article. The clarification read that they will continue their commitment to the Indian market. And their operations in the country are an integral part of their global strategy.
Toyota has tied up with Suzuki in a joint venture to develop electric and hybrid vehicle technology at affordable costs. The two companies have been working for the last two years on several projects. Toyota even has access to vehicles developed by Suzuki such as the Brezza and Baleno. While Baleno has been named as Glanza, the Brezza has been named Urban Cruiser and will be launched on 24th September 2020.
Despite running operations in India for more than 23 years, Toyota has a market share of only 2.57 percent. Meanwhile, Kia Motors which entered India in the year 2019 has managed to grab a 5 percent share of India’s passenger vehicle market. This is as per data supplied by the Society of Indian Automobile Manufacturers.