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Toyota group firms, including Toyota Kirloskar Motor, on Saturday said they will invest about ₹4,800 crore in Karnataka for local production of powertrain parts and other components of electric vehicles.
Toyota Kirloskar Motor (TKM) along with Toyota Kirloskar Auto Parts (TKAP) will put in ₹4,100 crore while a related company -- Toyota Industries Engine India (TIEI)-- will pitch in with another ₹700 crore. TKM and TKAP on Saturday inked a Memorandum of Understanding (MOU) with the Karnataka government in this regard.
"Just from the group companies (TKM & TKAP), from a direct employment point of view, we are looking at around 3,500 new jobs. Of course, as the supply chain system builds, we expect much more to come in later," executive vice president Vikram Gulati told PTI in an interaction. In-addition to boosting the local manufacturing eco-system, the new development will provide an impetus to employment generation and local community development, he added.
This investment will also spur the growth of local supplier base and hence result in higher investments and further job creation.
The MoU was exchanged between Chief Minister of Karnataka Basavaraj Bommai and Vikram S. Kirloskar, Vice-Chairman, Toyota Kirloskar Motor, in the presence of Dr. Murugesh R. Nirani, Minister of Large & Medium Industries, Government of Karnataka, Ravi Kumar, IAS, Chief Secretary of Karnataka State, and among other dignitaries were also .
As part of the MoU, Toyota Group of Companies will systematically invest towards making India a self-reliant manufacturing hub, thus contributing towards the Government’s Make in India and Atma Nirbhar Bharat mission. The investments are aimed at promoting greener technologies that will help lower dependence on fossil fuels and mitigate carbon emissions. This investment will also enable local production facilities to build electric powertrain parts and components, thereby cater to the electrified vehicle manufacturing in India. As a part of the Toyota Environmental Challenge 2050, Toyota will continue to focus on reducing carbon emissions in a holistic manner going beyond tailpipe emissions to address manufacturing and lifecycle CO2 emissions in order to realise its carbon neutrality goals by 2050, as announced earlier.
Chief Minister of Karnataka, Shri Basavaraj Bommai said, “Our aim is to build ‘New Karnataka for New India’ by creating new 21st century industrial townships and corridors. As a state committed to sustainable development and contributing to the nation’s progress, we want to make Karnataka a global supply-chain and manufacturing hub under our ‘Build for the World’ mission. This MoU with Toyota Group of Companies is a huge stride in this regard, and Karnataka Government is confident of Toyota’s commitment towards sustainable growth and local manufacturing quality for Karnataka’s growth and development. Karnataka being the hub of electric vehicles, welcomes this MoU which adds another feather to State’s cap as leader in this sector".
Minister for Large & Medium Industries, Government of Karnataka, Dr. Murugesh R. Nirani said, “Toyota Group investments will also enhance the local supplier growth in Karnataka, further leading to higher investments and more job creation. Besides boosting the local manufacturing sector, these investments will also support local community development."
The company said that it has been passionate and committed to build a stable, sustainable, and competitive local supply chain and has taken significant efforts in promoting localization of auto parts and components in line with Government’s ‘Make in India’ mission. The Group has invested in strengthening and increasing supplier base through consistently partnering with them to enhance their capacities and capabilities by sharing Toyota best practices, efficient processes and skilling of manpower, by imparting world-class training program to enhance the production excellence with high quality standards.
On upscaling the skill levels at suppliers, Toyota spent 40,000 man-hours every year to enhance processes through system, management, training, and hardware development. Further, another 8,500 man-hours are spent per year on suppliers’ people development.
Vikram S. Kirloskar, Vice-Chairman, Toyota Kirloskar Motor said, “Toyota is committed to enhance the pace of electrification strengthen domestic production with ‘Make in India’. Today’s MoU signing with the Government of Karnataka, in the presence of Chief Minister Basavaraj Bommai and all dignitaries, is a very important milestone in terms of ushering in large-scale investment to make deeper cuts in carbon emissions, higher employment generation, creating local manufacturing hub not only for domestic needs but also for global markets, local community development and advancement in innovation. I believe that such investments are needed to provide technologically viable and economically competitive alternatives to fossil-fuel-intensive technologies in vehicle mobility space.
"As a part of our philosophy, we always conduct deeper studies, analyse and explore multiple technological pathways that are best suited to optimally achieve the national goals on lowering dependence on fossil fuels, make India truly self-reliant, reducing carbon emissions and creating jobs. Toyota remains committed to serve our nation and the community where we operate," the company said in a statement.
Toyota said that it believes that the choice of technologies for achieving our national goals should be practical, sustainable, best suited for unique local conditions that helps to realise the transition in the fastest possible manner. Thus, while our long-term decisions are shaped by our Global environment challenge of achieving zero carbon emissions by 2050, our immediate technology decisions are influenced by our desire to achieve maximum immediate societal & environmental benefits, which in turn is largely determined by, the local energy mix of the country, infrastructure readiness as well as customer acceptance in line with our belief of ‘Leave No One Behind’.
These companies have so far invested Rs. 11,812 crores and employ more than 8,000 people. Over the years, the group has consciously adopted sustainable business practices and transforming from a carmaker to a mobility company.
