NEW DELHI: Japanese carmaker Toyota Kirloskar on Tuesday said that they continue to remain committed to the Indian market and their operations in the country is an integral part of their global strategy. Denying reports of non-expansion in the country due to higher taxes, the company said it plans to invest Rs 2,000 crore in developing vehicle technology and electric components.
“The news that Toyota Company will stop investing in India is incorrect. @vikramkirloskar has clarified that Toyota will invest more than Rs 2,000 crore in next 12 months,” Union minister Prakash Javadekar tweeted. Responding to the tweet, Vikram Kirloskar, vice-chairman of Toyota Kirloskar Motor( TKM) said, “Absolutely! We are investing Rs 2,000+ cr in electric components and technology for the domestic customer and export.
We are committed to the future of India and will continue to put all effort in society, environment, skilling and technology.” The report was not taken lightly by the Indian government as it undermines its effort to attract investment in the country, especially from manufacturers who are looking to exit China. The Centre is planning to shell out incentives worth $23 billion to attract manufacturers to set-up plans in India.
For the Covid-hit auto sector, the government has already promised looking at high GST rates and rolling out incentive-based scrappage policy by September end. Earlier in the day, TKM in a statement said that its first step is to ensure full capacity utilization of what it has created and this will take time.
It added that in wake of the slowdown, further exaggerated by the Covid-19 impact, the automobie industry has requested the government for support through a viable tax structure. TKM’s market share in the last one year has fallen from five per cent to below five per cent share in the domestic passenger vehicle market. The sector is dominated largely by Maruti Suzuki and Hyundai Motors.