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Toyota Group firms plan to pump in 4,800 crore for local production of powertrain parts and other components of electric vehicles in Karnataka. On Saturday, Toyota Kirloskar Motor (TKM) and Toyota Kirloskar Auto Parts (TKAP) signed a Memorandum of Understanding (MOU) with the state government.

Of the total investment, TKM and TKAP together will infuse 4,100 crore while another related company, Toyota Industries Engine India (TIEI) to invest the remaining 700 crore.

In an interview, TKM executive vice president Vikram Gulati told PTI, "Toyota Group and TIEI together would be making an investment of around 4,800 crore. We are doing this in the spirit of 'go green, go local' and our aim is to contribute to our country's mission of faster reduction of carbon emissions and make in India."

Meanwhile, during the MoU signing event, TKM vice-chairman Vikram S Kirloskar said the development is a very important milestone in terms of ushering in large-scale investment to make deeper cuts in carbon emissions, higher employment generation, creating a local manufacturing hub not only for domestic needs but also for global markets, local community development and advancement in innovation.

Apart from driving the local manufacturing eco-system, the deal will also provide an impetus to employment generation and local community development.

The MoU is seen to bring in 3,500 new jobs, while as the supply chain system builds, Gulati expects "much more to come in later."

The Group intends to utilise its existing facilities in the state to produce the components. Gulati added that it would be aiming to cater to both domestic and international markets, while the further moving towards a completely new area of technology which is electrified powertrain parts.

Answering about the timeframe for the start of production, Gulati said that it is going 'to be very near-term.' However, he did not give any specifics.

Highlighting that the Group has all the electrified technologies, Gulati said this would meet not just consumer requirements but are also aligned with the government's national objectives.

He said in the interview, "We believe that electrification is beginning to take off. There are still challenges around it, but the key to moving towards faster electrification would be to take steps like the ones we're taking now. To build local ecosystems, local capabilities, local competitiveness and through that to try to deliver all these technologies at an affordable cost."

When asked if the Indian market is now ripe for electric vehicles, Gulati stated that "if you look at both demand side and supply side, a lot of effort is going on... Our belief is that all technologies, electrified or others, that help to promote national goals should be promoted in a proportionate manner."

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