Toyota to invest $624M to manufacture EV parts in India

Toyota Group plans to invest 48 million ($624 million) to make electric vehicle (EV) components in India as the Japanese automaker works towards carbon neutrality by 2050.

Toyota Kirloskar Auto Parts and Toyota Kirloskar Motor signed a memorandum of understanding with the southern Indian state of Karnataka to invest 41 billion rupees, the group announced in a statement. The rest of the funding will come from Toyota Industries Engine India.

Toyota is aligning its own green targets with the Indian government’s ambitions of becoming a manufacturing hub through the switch to clean transport in India is slower than in other countries such as China, and the expensive US price tags, lack of options in electric models and insufficient charging stations have led to sluggish adoption of EVs in India.

Vikram Gulati, the executive vice president of Toyota Kirloskar, said that the investment would create around 3,500 new jobs from a direct employment point of view. He added that as the supply chain systems are built, they expect many more jobs to arrive in the future.

India’s EV sales have doubled, led mainly by battery-powered scooter sales.

According to a forecast by Crisil, Indian carmakers could generate $20 billion in revenue from electric vehicles between the now and the fiscal year of 2026.