Toyota will invest over Rs 2,000 crore in India, says Vikram Kirloskar

Toyota Kirloskar Motors (TKM) will invest more than Rs 2,000 crore in electric components and technology for the domestic customers as well as for exports, its vice-chariman Vikram Kirloskar said on Tuesday.

In a tweet, he said: "We are investing 2000+ crs in electric components and technology for the domestic customer and export. We are committed to the future of India and will continue to put all effort in society, environment, skilling and technology."

The statement comes amid reports that the company will halt expansion in India due to the country's high tax regime.

Kirloskar's tweet came in response to Union minister Prakash Javadekar's post on Twitter which stated that reports of Toyota halting investments in India were incorrect.

In another tweet, Kirloskar said: "We are seeing the demand increase & market recover slowly. The future of sustainable mobility is strong here in India & Toyota is proud to be part of this journey. We are investing 2000+ crs towards the electrification of vehicles and helping build a strong India!"

Earlier in a separate statement, TKM assured that its first priority is to ensure full utilisation of production capacity it has already created in the country.

The company further said that it continues to be committed to the Indian market, and its operations in the country is an integral part of Toyota's global strategy.

"We need to protect the jobs we have created and we will do everything possible to achieve this. Over our two decades of operations in India, we have worked tirelessly to build a strong competitive local supplier eco-system and develop strong capable human resources," the automaker said.

In wake of the slowdown that has been exaggerated by COVID-19 impact, the auto industry has been requesting the government for support to sustain industry through a viable tax structure, TKM noted.

"We remain confident that the government will do everything possible to support the industry and employment. We recognise the strong proactive efforts being made by the government to support various sectors of the economy and appreciate the fact that it is open to examine this issue despite the current challenging revenue situation," it added.