The Toyota Group plans to invest Rs 4,800 crore ($ 624 million) to manufacture electric vehicle parts in India, as Japanese automakers move toward carbon neutrality by 2050.
Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts have signed a memorandum of understanding with Karnataka to invest Rs 4,100 crore, the group said in a statement on Saturday. The rest will come from Toyota Industries Engine India.
Toyota is aligning its own green targets with India’s ambition to become a manufacturing hub even though the switch to clean transport in South Asian countries is slower than other countries like China and the United States. Expensive price tags, lack of alternatives to electric models and inadequate charging stations have led to the slowdown of battery vehicles in India.
“From a direct employment perspective, we are looking at about 3,500 new jobs,” Vikram Gulati, executive vice president of Toyota Kirloskar, told Press Trust of India in an interview.
“As the supply chain system unfolds, we look forward to much more.”
He added that the company would be moving into a new field of technology – electrified powertrain parts – production of which was set to begin “very soon”.
According to Crisil’s forecast, Indian carmakers could now earn $ 20 billion from electric vehicles by FY2026. By 2040, according to BloombergNEF, 53% of new automobile sales in India will be electric, compared to 77% in China.