Karnataka government and Toyota Group officials signed a Memorandum of Understanding (MoU) on investment in the state in presence of the Chief Minister and the Industry Minister in Bangaluru on the 7th May 2022, Saturday. This will promote 'Atma Nirbhar Bharat' to manufacture for India and the world.
The Japanese company determined to invest Rs 4,800 crores in the 'Make-in-India' project for local production of electric vehicle components and also to boost research around electrification and greener technologies.
Toyota Group of Companies signed a Memorandum of Understanding (MoU) with the government of Karnataka to invest Rs 4,100 cr. Toyota Industries Engine India (TIEI) will invest the rest of the amount Rs 700 cr later. ViceChairman, Toyota Kirloskar Motor told a popular news media that " We are investing Rs 4,800 crores to enable a faster reduction in carbon emission. Half of this investment has already been made while the remaining will be executed by mid next year".
The company trying to reduce its dependency on fossil fuels and lower carbon emissions. So, this additional investment from the company is set to promote greener technologies and help the environment be safe. This investment will also focus on local production to build electric powertrain parts & components.
On the other hand, the Chief Minister, Basavaraj Bommai of the state of Karnataka, said " I want Toyota to use new technology and bring new vehicles which are not launched anywhere in the world. Don't bring old dyes and show them as a new one. My engineering instinct will not accept it though as a chief minister I may say it's okay", and urged Toyota Kirloskar Motor at the event on Saturday.
It is said that additional 3,500 jobs will generate from this biggest investment. It is also noted that in the last 25 years, this Group of Companies has invested Rs 11,812 crores and generated lots of jobs in India.
In addition to boosting the local manufacturing eco-system, this new development will provide an impetus to employment generation and local community development, the company said. This investment will also increase the local supplier base's growth and hence resulting in higher investments and further job creation, it added.
Since its inception, this group of companies has been passionate and committed to build a stable, sustainable, and competitive local supply chain and has taken significant efforts in promoting the localization of auto parts and components in line with the Government's 'Make in India' mission.
The chief minister of Karnataka is very hopeful and welcomes this MoU which adds another feather to State's cap as a leader in this sector. This commitment toward local manufacturing quality for Karnataka's growth & development and make the state a hub of electric vehicles.
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