Get Instant Loan up to ₹10 Lakh!
Toyota will invest ₹2,000 crore in India in next 12 months, Vikram Kirloskar clarifies
- 'We are investing ₹2,000+ crs in electric components and technology for the domestic customer and export,' said Vikram Kirloskar
- Clarifying Toyota has not stalled investments in India, Kirloskar said,'Toyota is proud to be part of this journey'
Union minister Prakash Javadekar on Tuesday denied a report that Toyota Motor Corp would not expand further in India due to the country’s high tax regime. "The news that Toyota Company will stop investing in India is incorrect. @vikramkirloskar has clarified that Toyota will invest more than ₹2,000 crore in next 12 months," Javadekar wrote on social-media platform.
Commenting on Javadekar's statement, Vikram Kirloskar, vice chairman, Toyota Kirloskar Motor said, "Absolutely! We are investing 2,000+ crs in electric components and technology for the domestic customer and export."
Clarifying Toyota has not stalled investments in India, Kirloskar said,"Toyota is proud to be part of this journey." "We are committed to the future of India and will continue to put all effort in society, environment, skilling and technology," he further added.
"We are seeing the demand increase and the market recover slowly. The future of sustainable mobility is strong here in India," vice chairman of Toyota Kirloskar Motor said.
Toyota, one of the world’s biggest carmakers, began operating in India in 1997. Its local unit is owned 89% by the Japanese company. In the statement, the company said, "Our first step is to ensure full capacity utilisation of what we have created and this will take time."
"Toyota continues to be committed to the Indian market and its operations in the country is an integral part of Toyota's global strategy," it added.
"We need to protect the jobs we have created and we will do everything possible to achieve this. Over our two decades of operations in India, we have worked tirelessly to build a strong competitive local supplier eco-system and develop strong capable human resources," the automaker said.
There have been reports that Toyota Motor Corp. won’t expand further in India. "The government keeps taxes on cars and motorbikes so high that companies find it hard to build scale," said Shekar Viswanathan, vice chairman of Toyota’s local unit, Toyota Kirloskar Motor, according to Bloomberg report. Automobile sales in India were weathering a slump before the coronavirus pandemic.
“The message we are getting, after we have come here and invested money, is that we don’t want you," Viswanathan said in an interview. In the absence of any reforms, “we won’t exit India, but we won’t scale up," Bloomberg reported.
“Market India always has to precede Factory India, and this is something the politicians and bureaucrats don’t understand," Viswanathan told Bloomeberg.
In India, motor vehicles including cars, two-wheelers and sports utility vehicles (although not electric vehicles), attract taxes as high as 28%. On top of that there can be additional levies, ranging from 1% to as much as 22%, based on a car’s type, length or engine size.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Business NewsNewsIndiaToyota will invest ₹2,000 crore in India in next 12 months, Vikram Kirloskar clarifies
First Published:15 Sep 2020, 08:22 PM IST
- Top Gainers
- Top Losers
- 52 Week High