Toyota group firms, including Toyota Kirloskar Motor, will invest about Rs 4,800 crore in Karnataka.
Contents
The Deal
This would go towards 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 Rs 4,100 crore while a related company — Toyota Industries Engine India (TIEI) will contribute Rs 700 crore.
TKM and TKAP have signed a Memorandum of Understanding (MOU) with the Karnataka government.
‘Go Green, Go Local’
The announcement coincides with the automaker’s 25 years of presence in India.
TKM executive vice president Vikram Gulati said that the investment comes with the vision of ‘go green, go local’.
Their aim is to contribute to India’s goals of faster reduction of carbon emissions and make in India.
Job Creation
This investment will also help towards employment generation and local community development.
Gulati said that they estimate creating around 3,500 new jobs with more being added as the supply chain system builds.
It will drive the growth of the local supplier base and hence result in higher investments and further job creation.
State Goals
Chief Minister of Karnataka Shri Basavaraj Bommai said that the state is committed to sustainable development and contributing to the nation’s progress.
The state government wants to make Karnataka a global supply-chain and manufacturing hub under its own ‘Build for the World’ mission.
The MoU represents progress in this regard and the Karnataka Government is confident that Toyota will contribute to its growth and development with its commitment towards sustainable growth and local manufacturing quality.
What The Collaboration Contributes
Vikram S. Kirloskar, Vice-Chairman, Toyota Kirloskar Motor spoke about the benefits of this collaboration, such as:
- Making deeper cuts in carbon emissions
- Higher employment generation
- Creating local manufacturing hub for domestic needs and for global markets
- Local community development
- Advancement in innovation