Toyota to invest USD724 million in the Indian EV (electric vehicle) component market
Toyota Group plans to invest 48 billion rupees (USD 624 Million) to make electric vehicle components in India, as the Japanese automaker works toward carbon neutrality by 2050.
Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts signed an MoU with the southern state of Karnataka to invest 41 billion rupees, the group said in a statement 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 in 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 added that the company would be moving toward a new area of tech technology- electrified powertrain parts-with production going to start in the “very near term.”
Indian automakers could generate USD 2 billion in revenue from electric vehicles between the now and fiscal year 2026, according to a forecast by Crisil.
By 20490, 53% of new automobile sales in India will be electric, compared with 77% in China, according to Bloembergen.
4Q sales may heat estimates. Toyota Motor Corp. may report 4th quarter sales growth that beat the average analyst estimate of 0.1%, according to the Bloomberg supply chain analysis. Suppliers Denso Corp,. Aisin Corp. Toyota Boshoku, Toyota Gosei, and JTEKT Corp. reported weighted average sales growth of 6.65% according to the recent growth financial result.