Toyota plans to make India a manufacturing hub for electric vehicle parts to meet domestic demand and exports to several ASEAN countries as well as Japan, a senior company executive said, quoted by Reuters on Thursday.
“The aspiration is to make India a manufacturing hub for cleaner technologies,” said Toyota Kirloskar Motor Executive Vice President, Vikram Gulati.
Toyota plans to start by producing e-drive or electric powertrain parts used by various types of electric vehicles including battery, plug-in hybrid, and other hybrid models.
Earlier, Toyota announced that it would invest 48 billion rupees in India to localize the electric vehicle supply chain, as well as part of its broader carbon neutrality goal by 2050.
Most of the investment in India will be made by Toyota’s local units, namely Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts, as well as joint ventures with Toyota Motor Corp. Aisin Seiki and Kirloskar Systems.
Prime Minister Narendra Modi is also known to offer billions of dollars in incentives to companies to manufacture electric cars and parts locally.
In India, Toyota is more focused on launching the first hybrid model. This is believed to be more in line with the country’s goal of reducing dependence on fossil fuels and carbon emissions.
Gulati said this would address a broad range of consumer needs and enable a faster transition to an electrified future.
“Building the supply chain early will help Toyota to be competitive in terms of volume and price in India,” he said.
By doing so, Toyota hopes it can make the shift to electric vehicle technology in India faster and with less obstacles.