Toyota to manufacture electric vehicle parts in India for domestic and export markets

The Toyota logo is seen on the hood of a newly launched Camry Hybrid electric vehicle at a hotel in New Delhi, India, January 18, 2019. REUTERS/Anushree Fadnavis

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  • Move is part of Toyota’s carbon neutrality goals for 2050

NEW DELHI, May 11 (Reuters) – Toyota Motor Corp (7203.T) plans to turn India into a manufacturing hub for electric vehicle parts to meet demand there as well as for export to Japan and some ASEAN countries, a senior company executive told Reuters. .

The automaker plans to start producing e-drives, or electric powertrain parts used by different types of electric vehicles, including battery electric vehicles, plug-in hybrids and other hybrid models, said Vikram Gulati, executive vice president of Toyota Kirloskar Motor.

“The aspiration is to make India the manufacturing hub for cleaner technologies. It’s about creating the building blocks,” Gulati told Reuters.

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He did not name the countries of ASEAN, or the Association of Southeast Asian Nations, to which Toyota would export.

The move follows the company’s recent announcement that it will invest 48 billion rupees ($621 million) in India to localize the electric vehicle supply chain, and is also part of its broader carbon neutrality goals by 2050.

It also comes as Prime Minister Narendra Modi’s government is offering companies billions of dollars in incentives to build electric vehicles and their parts locally.

Most of the investment in India will be made by Toyota’s local unit, Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts (TKAP), a joint venture of Toyota Motor Corp, Aisin Seiki Co (7259.T) and Kirloskar Systems, the company said. company. on Saturday.

The world’s largest automaker said in December that it plans to invest $70 billion to electrify its cars by 2030, including developing battery electric vehicles as it catches up with global automakers investing billions of dollars in the change to cleaner vehicles. read more

In India, however, Toyota is more focused on launching its hybrid models first, which it believes better suits the country’s goal of reducing reliance on fossil fuels and carbon emissions.

Gulati said this would also address the different needs of consumers and enable “a faster transition to an electrified future.”

Building the supply chain early will help Toyota become competitive in terms of volume and price in India, Gulati said.

Toyota hopes this will enable a “quicker and smoother” shift for the Indian auto industry to electric vehicle technology, it added.

($1 = 77.2475 Indian rupees)

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Information from Aditi Shah; Edited by Bernadette Baum

Our standards: the Thomson Reuters Trust Principles.

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