Toyota Kirloskar will invest Rs 2,000 crore in developing vehicle technology and electric components in India, a top official said hours after a news article claimed the carmaker was bringing all new investments in the country to a halt.
“We are investing Rs 2,000+ crore in electric components and technology for the domestic customer and exports. We are committed to the future of India and will continue to put all effort in society, environment, skilling and technology," Vikram Kirloskar, vice-chairman, Toyota Kirloskar Motor, aid in a tweet.
Kirloskar’s tweet was in response to a tweet from the Union minister Prakash Javadekar.
“The news that Toyota Company will stop investing in India is incorrect. @vikramkirloskar has clarified that Toyota will invest more than Rs 2000 crore in next 12 months," Javadekar had tweeted.
Quoting Toyota Kirloskar vice-chairman Shekar Viswanathan, a Bloomberg article stated that Toyota Kirloskar Motor had decided to halt expansion in India, blaming the high taxes levied on automobiles in the country.
Vishwanathan also made it clear that if reforms are not made to the current situation, Toyota may not exit India, but they do not plan to expand either.
The Indo-Japanese joint venture sent a clarification a few hours after the article was published. It stated: “We continue to be committed to the Indian market and our operations in the country are an integral part of our global strategy."
Toyota has tied up with Suzuki to jointly develop electric and hybrid vehicle technology at affordable costs. The two companies have been working since the last two years on several projects. Toyota even got access to Suzuki-developed vehicles such as the Brezza and Baleno. While Baleno has been rebadged as Glanza, the Brezza has been named Urban Cruiser and will be launched on September 24.
Despite running operations in India for more than 23 years, Toyota has a market share of just 2.57 percent, whereas Kia Motor which entered India in 2019 has managed to grab 5 percent share of India’s passenger vehicle market as per data supplied by the Society of Indian Automobile Manufacturers.
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