We are committed to Indian market, says Toyota

Toyota Kirloskar Motor (TKM), the Indian subsidiary of Japan’s Toyota Motor Corp, on Tuesday, said that it is committed to the Indian market and its operations in India are an integral part of its global strategy.

Toyota's statement came after a report by Bloomberg which said that Toyota did not plan to expand further in India in the wake of high taxes levied on automobiles in the country. "We would like to state that we continue to be committed to the Indian market," it said.

"Over our two decades of operations in India, we have worked tirelessly to build a strong competitive local supplier eco-system and develop strong capable human resources. Our first step is to ensure full capacity utilisation of what we have created and this will take time," Toyota said in its statement.

In the wake of the slowdown that has been exaggerated by the Covid-19 impact, the auto industry has been requesting the government for support to sustain industry through a viable tax structure. "We remain confident that the government will do everything possible to support the industry and employment," Toyota said.

Meanwhile, the minister for environment, forests and climate change Prakash Javadekar tweeted: “The news that Toyota company will stop investing in India is incorrect. @vikramkirloskar has clarified Toyota will invest more than Rs 2,000 crore in the next 12 months.”

TKM Chairman Vikram Kirloskar said in a tweet: "We are investing Rs 2,000 crore 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 into society, environment, skilling, and technology."

Toyota came to India in 1997 through a joint venture with the Kirloskar Group (11%). The majority 89% stake is held by Toyota Motor Corp in the JV. The Toyota Kirloskar Motor Private Limited started its operations in India in 1999 with the commencement of passenger car production at its factory in Bidadi near Bengaluru.

It has set up two factories with a combined capacity of 310,000 units per annum. It currently manufactures Innova, Fortuner, Yaris, Camry Hybrid at Bidadi. Toyota has also set up an engine and transmission manufacturing facility at Bengaluru. The company currently employs 6,500 workers.