Karnataka Chief Minister Basavaraj Bommai has announced that Toyota Group will invest Rs 4,800 crore in Karnataka.
"Happy to announce that we have signed an MOU with the Toyota Group of Companies. The company will invest Rs 4800 Crores in Karnataka. We are committed to bring about unprecedented growth & development in the state. This MOU is another milestone in the same direction," CM Bommai tweeted on Saturday (7 May).
Under the MoU, Toyota group will invest Rs 4,800 crore in state for local production of powertrain parts and other components of electric vehicles.
Toyota Kirloskar Motor (TKM) along with Toyota Kirloskar Auto Parts (TKAP) will put in Rs 4,100 crore while a related company - Toyota Industries Engine India (TIEI) - will pitch in with another Rs 700 crore, reports Moneycontrol.
"Toyota Group and TIEI together would be making an investment of around Rs 4,800 crore. We are doing this in the spirit of 'go green, go local' and our aim is to contribute to our country's mission of faster reduction of carbon emissions and make in India," TKM executive vice president Vikram Gulati was quoted in the Moneycontrol report as saying.
"In its effort to contribute to the country’s vision of “Make in India” and to enable a faster reduction in carbon emissions, out of total investment of INR 4,800 crores, Toyota Group of Companies that constitutes of Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts today announced their Memorandum of Understanding (MOU) with the Government of Karnataka to invest INR 4,100 crores," the company said in a statement on Saturday.
This announcement coincides with Toyota Kirloskar Motor’s 25 years of presence in India.
In-addition to boosting the local manufacturing eco-system, the new development will provide an impetus to employment generation and local community development, the company said.
This investment will also spur the growth of local supplier base and hence result in higher investments and further job creation, it added.
"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 company said.
The company further added that 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," it said.
Speaking on the Occasion, Bommai said, “Our aim is to build ‘New Karnataka for New India’ by creating new 21st century industrial 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 added.
Karnataka's Minister for Large and Medium Industries Murugesh R 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.”
Vikram S Kirloskar, Vice-Chairman, Toyota Kirloskar Motor 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, in the gracious presence of Hon’ble Chief Minister Basavaraj Bommaiji and all dignitaries, 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".