Karnataka signs a Memorandum of Understanding
Toyota Kirloskar Motor (TKM), Toyota Kirloskar Auto Parts (TKAP), and Toyota Industries Engines India Private Limited (TIEI) have committed to an investment of Rs 4800 crore in Karnataka and have signed a Memorandum of Understanding (MoU) with the state. The funds will be used to promote greener technology that will help reduce reliance on fossil fuels while also reducing carbon emissions. This investment will also allow indigenous manufacturing facilities to produce electric powertrain parts and components, allowing India to compete in the electrified vehicle market.
TKM and TKAP will contribute Rs 4100 crore to the total investment of Rs 4800 crore. TIEI, Toyota Industries Engine India, will contribute additional Rs 700 crore. This announcement falls on the 25th anniversary of Toyota Kirloskar Motor in India.
Toyota is also considering exports
In addition to helping the local manufacturing eco-system, the new facility will spur job creation and community development, according to a statement from the company.
Toyota said it will continue to work on decreasing carbon emissions in a comprehensive manner, including production and lifecycle CO2 emissions, as part of the Toyota Environmental Challenge 2050. It may be remembered that the Toyota Group has pledged to achieving carbon neutrality by 2050.
Basavaraj Bommai, the Chief Minister of Karnataka, stated, “Under our ‘Build for the World’ objective, we intend to make Karnataka a worldwide supply-chain and industrial powerhouse. This MoU with the Toyota Group of Companies is a significant step forward in this respect, and the Karnataka government is confident in Toyota’s commitment to long-term growth and high-quality local manufacturing. Karnataka, as the global centre for electric vehicles, welcomes this MoU, which contributes to the state’s position as a pioneer in this field “,
“Toyota is committed to increasing the speed of electrification and improving domestic production,” stated Vikram S Kirloskar, Vice-Chairman, Toyota Kirloskar Motor. He went on to say that the MoU marks a watershed moment in terms of bringing in large-scale investment to reduce carbon emissions even more, create more jobs, and establish a local manufacturing base that serves both domestic and worldwide markets.
For the record, Toyota and Maruti Suzuki have previously agreed to collaborate on electric vehicle development for the Indian market. According to reports, the two companies are working on an electric SUV with a range of up to 500 kilometres.
In the meantime, Toyota has launched the Toyota Mirai, the world’s most advanced Green Hydrogen Fuel Cell Electric Vehicle (FCEV).