Toyota plans to manufacture EV parts in India for domestic export markets

By Aditi Shah

NEW DELHI (Reuters) – Toyota Motor Corp. plans to make India a manufacturing hub for electric car parts to meet demand there, as well as for exports to Japan and some ASEAN countries, a senior business executive told Reuters .

The automaker plans to begin producing e-drives as electric drive parts used by various types of electric cars, including battery EVs, plug-in hybrids and other hybrid models, said Vikram Gulati, Executive Vice President at Toyota Kirloskar Motor.

“The aim is to make India the manufacturing hub for cleaner technologies. This is about making the building blocks,” Gulati told Reuters.

He did not name the countries in ASEAN, or the Association of Southeast Asian Nations, to which Toyota would export.

The move follows the company’s recent announcement that it will invest 48 billion rupees ($ 621 million) in India to locate the supply chain for EVs, and is also part of its broader 2050 carbon neutrality targets.

It’s also because Prime Minister Narendra Modi’s government offers billions of dollars in incentives to companies 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 and Kirloskar Systems, the company said on Saturday.

The world’s largest carmaker said in December that it plans to invest $ 70 billion to electrify its cars by 2030, including the development of battery-powered EVs, as it engages with global carmakers that ‘ t billion dollars to invest in the shift to cleaner cars.

In India, however, Toyota is more focused on launching its hybrid models first, which they say are better suited to the country’s goal of reducing dependence on fossil fuels and carbon emissions.

Gulati said this would also address different consumer needs and “enable a faster transition to an electrified future”.

The early expansion of the supply chain 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 toward electric car technology, he added.

($ 1 = 77.2475 Indian rupees)

(Report by Aditi Shah; Edited by Bernadette Baum)

(Only the headline and image of this report may have been re-edited by Business Standard staff; the rest of the content will be automatically generated from a syndicated feed.)

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