Toyota Group announce investments of Rs 4,800 crore in Karnataka

Toyota Group announce investments of Rs 4,800 crore in Karnataka

Bengaluru, May 7, 2022

The Toyota Group and its related company TIEI today announced plans to invest Rs 4,800 crore in Karnataka to contribute to the "Make in India" mission and to enable a faster reduction in carbon emissions.

Out of this, the Toyota Group of companies, consisting of Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts, signed a memorandum for an investment of Rs 4,100 crore.

This announcement coincides with Toyota Kirloskar Motor’s 25 years of successful journey in India, a press release from the company said.

"In-addition to boosting the local manufacturing eco-system, the new development will provide an impetus to employment generation and local community development. This investment will also spur the growth of local supplier base and hence result in higher investments and further job creation," the release said.

The MoU was exchanged between Karnataka Chief Minister Basavaraj Bommai and Toyota Kirloskar Motor Vice-Chairman Vikram S. Kirloskar.

Murugesh R. Nirani, Karnataka Minister of Large & Medium Industries, and State Chief Secretary Ravi Kumar were amongst those present on the occasion.

"As part of the MoU, Toyota Group of Companies will systematically invest towards making India a self-reliant manufacturing hub, thus contributing towards the Government’s Make in India and Atma Nirbhar Bharat mission. The investments are aimed at promoting greener technologies that will help lower dependence on fossil fuels and mitigate carbon emissions. This investment will also enable local production facilities to build electric powertrain parts and components, thereby cater to the electrified vehicle manufacturing in India.

"As a part of the Toyota Environmental Challenge 2050, Toyota will continue to focus on reducing carbon emissions in a holistic manner going beyond tailpipe emissions to address manufacturing and lifecycle CO2 emissions in order to realise its carbon neutrality goals by 2050, as announced earlier," the release said.

Bommai said his government aimed to build a "New Karnataka for New India" by creating new 21st century indusrial townships and corridors.

"As a state committed to sustainable development and contributing to the nation’s progress, we want to make Karnataka a global supply-chain and manufacturing hub under our ‘Build for the World’ mission. This MoU with Toyota Group of Companies is a huge stride in this regard, and Karnataka Government is confident of Toyota’s commitment towards sustainable growth and local manufacturing quality for Karnataka’s growth and development. Karnataka being the hub of electric vehicles, welcomes this MoU which adds another feather to State’s cap as leader in this sector," he said.

Nirani said, “Toyota Group investments will also enhance the local supplier growth in Karnataka, further leading to higher investments and more job creation. Besides boosting the local manufacturing sector, these investments will also support local community development.”

The release said Toyota had been, since its inception, committed to build a stable, sustainable, and competitive local supply chain and has taken significant efforts in promoting localization of auto parts and components.

"The Group has invested in strengthening and increasing supplier base through consistently partnering with them to enhance their capacities and capabilities by sharing Toyota best practices, efficient processes and skilling of manpower, by imparting world-class training programme to enhance the production excellence with high quality standards," it said.

"On upscaling the skill levels at suppliers, Toyota spent 40,000 man-hours every year to enhance processes through system, management, training, and hardware development. Further, another 8,500 man-hours are spent per year on suppliers’ people development," it said.

Kirloskar said, “Toyota is committed to enhance the pace of electrification, strengthen domestic production with ‘Make in India’. Today’s MoU signing with the Government of Karnataka is a very important milestone in terms of ushering in large-scale investment to make deeper cuts in carbon emissions, higher employment generation, creating local manufacturing hub not only for domestic needs but also for global markets, local community development and advancement in innovation. I believe that such investments are needed to provide technologically viable and economically competitive alternatives to fossil-fuel-intensive technologies in vehicle mobility space.

"As a part of our philosophy, we always conduct deeper studies, analyse and explore multiple technological pathways that are best suited to optimally achieve the national goals on lowering dependence on fossil fuels, make India truly self-reliant, reducing carbon emissions and creating jobs. Toyota remains committed to serve our nation and the community where we operate.”

These companies have so far invested Rs. 11,812 crores and employ more than 8,000 people. Over the years, the group has consciously adopted sustainable business practices and transforming from a carmaker to a mobility company, the release added.

NNN

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