Toyota Motor Corp intends to make India a manufacturing hub for electric car parts to fulfil local demand as well as export to Japan and several ASEAN nations, according to a senior company executive.
According to Vikram Gulati, executive vice president of Toyota Kirloskar Motor, the manufacturer intends to begin by developing e-drives or electric powertrain elements utilised by various electric vehicle types, such as battery EVs, plug-in hybrids, and other hybrid models.
"The objective is for India to become a green technology manufacturing hub. This is about laying the groundwork "Gulati stated to Reuters.
He did not specify which ASEAN nations Toyota will export to.
The decision comes on the heels of the company's recent statement that it will invest 48 billion rupees ($621 million) in India to localise the EV supply chain, and it is also part of the company's larger 2050 carbon-neutrality aspirations.
It also comes at a time when Prime Minister Narendra Modi's administration is paying corporations billions of dollars in incentives to manufacture EVs and their components in India.
According to Toyota, the majority of the investment will be made in India by Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts (TKAP), a joint venture between Toyota Motor Corp, Aisin Seiki Co, and Kirloskar Systems.
In December, the world's largest manufacturer announced plans to invest $70 billion in electrifying its cars by 2030, including the development of battery EVs, as it tries to catch up with global automakers investing billions of dollars in the transition to cleaner vehicles.
Toyota, on the other hand, is more focused on introducing hybrid cars initially, believing that they are more suited to the country's goal of reducing reliance on fossil fuels and carbon emissions.
Gulati stated that this would also handle varied customer requirements and allow for a "smoother transition to an electric future."
Gulati believes that by establishing a supply chain early on, Toyota would be able to compete in terms of volume and pricing in India.
Toyota anticipates that this would allow the Indian auto sector to make a "faster and easier" transition to electric car technology.