Toyota Kirloskar Motor (TKM) vice-chairman Vikram Kirloskar confirmed on Tuesday that the company would invest more than Rs 2,000 crore in electric components and technology for the vehicles over the next 12 months. He spoke while rejecting the statement of a senior company official. A senior company official had said that the company is stalling its expansion in India in view of high taxes. The company also said in a separate statement that its priority is to use its existing capacity in India, which will take time.
The company had said to stop its expansion in India
Shekhar Vishwanathan Shekhar, vice-chairman and full-time director of TKM, said in an interview with Bloomberg that the company would halt its expansion into India, and also rejected future investments, saying that the tax on cars and motorbikes in India was so high More that the company sees it difficult to move forward. In response to this report, Union Heavy Industries Minister Prakash Javadekar tweeted: “Toyota Company is stopping investment in India. This type of news is wrong.” Vikram Kirloskar has clarified that Toyota will invest more than Rs 2,000 crore in the next 12 months.
– Prakash Javadekar (@PrakashJavdekar) September 15, 2020
Company Bid – We are committed to India’s future
Confirming the minister’s statement, Kirloskar also tweeted, “Absolutely, we are investing more than 2,000 crores in electric components and technology for domestic customers and exports.” We are committed to the future of India and will continue to do everything possible in the field of society, environment, skills and technology. He also said that the company feels that the demand is increasing and the market is slowly improving. “The future of affordable mobility in India is strong and Toyota is proud to be a part of this journey. The company has two factories at Bidadi near Bangalore with a production capacity of 3.10 lakh units. TKM is a joint venture company between the Japanese company Toyota Motor Company and the Kirloskar Group.