Earlier in the month, Toyota Vice Chairman Shekar Viswanathan had said that the company would not be scaling up its operations in India, citing high tax structure as one of the reasons behind the move. The Union Minister Prakash Javadekar took cognisance of the matter, clearing all doubts on the Company’s move.
Speaking on the matter, Union minister Prakash Javadekar tweeted, “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.”
In response to this, Vikram Kirloskar, vice-chairman, Toyota Kirloskar Motor, said in a tweet, “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.”
On this, Masakazu Yoshimura, Managing Director, Toyota Kirloskar Motor said, “Toyota Kirloskar Motor continues to be deeply committed to India and its national objectives. We have firm belief in the core strength of the country’s economic growth potential and are fully committed for continually working towards contributing to the economic development. As part of these efforts, Toyota Group in India is targeting to invest over Rs 2000 crore in India in the coming years on technology and electrification, both for the domestic and the exports market. We reaffirm that TKM intends to make all efforts to promote and introduce newer, cleaner and world-class technologies and services in the market.”
According to the Society of Indian Automobile Manufacturers data, Toyota, which is running operations in India for more than 23 years, has a market share of just 2.57 percent in India, whereas Kia Motor which entered India in 2019 has a 5 percent share of India’s passenger vehicle market.
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