Toyota to make EV parts in India for domestic, export markets

Aisin

11/05/2022 14:25

* Move is part of Toyota's 2050 carbon-neutrality goals

    By Aditi Shah
    NEW DELHI, May 11 (Reuters) - Toyota Motor Corp  7203.T 
plans to make India a manufacturing hub for electric vehicle
parts to meet demand there as well as for export to Japan and
some ASEAN countries, a senior company executive told Reuters.
    The carmaker plans to start by producing e-drives or
electric powertrain parts used by different electric vehicle
types, including battery EVs, plug-in hybrids and other hybrid
models, Vikram Gulati, executive vice president at Toyota
Kirloskar Motor said.
    "The aspiration is to make India the manufacturing hub for
cleaner technologies. This is about creating the building
blocks," Gulati told Reuters. 
    He did not name the countries in ASEAN, or the Association
of Southeast Asian Nations, that Toyota would export to.
    The move follows the company's recent announcement that it
will invest 48 billion rupees ($621 million) in India to
localise the supply chain for EVs, and is also part of its
broader 2050 carbon-neutrality goals. 
    It also comes as Prime Minister Narendra Modi's government
is offering companies billions of dollars in incentives to build
EVs and their parts locally. 
    The bulk of the investment in India will be made by Toyota's
local unit, Toyota Kirloskar Motor and Toyota Kirloskar Auto
Parts (TKAP), a joint venture of Toyota Motor Corp, Aisin Seiki
Co  7259.T  and Kirloskar Systems, the company said on Saturday.
    The world's biggest carmaker said in December it plans to
invest $70 billion to electrify its automobiles by 2030,
including developing battery EVs as it plays catch-up with
global automakers investing billions of dollars in the shift to
cleaner vehicles.  urn:newsml:reuters.com:*:nL1N2SZ0C7
    In India, however, Toyota is more focussed on launching its
hybrid models first, which it believes are better suited to the
country's aim of reducing dependence on fossil fuels and carbon
emissions. 
    Gulati said this would also address varying consumer needs
and enable "a faster transition towards an electrified future".
    Building out the supply chain early will help Toyota become
competitive in terms of volume and price in India, Gulati said.
    Toyota expects this to enable a "faster and smoother" shift
for the Indian auto industry to electric-vehicle technology, he
added. 
    ($1 = 77.2475 Indian rupees)

 (Reporting by Aditi Shah;
Editing by Bernadette Baum)
 ((aditi.shah@tr.com; +91-11-4954 8023, +91-11-3015 8023;
Reuters Messaging: twitter: @aditishahsays))