Toyota group firms, including Toyota Kirloskar Motor, on Saturday said they will invest about Rs 4,800 crore in Karnataka for local production of powertrain parts and other components of electric vehicles.
Toyota Kirloskar Motor (TKM) along with Toyota Kirloskar Auto Parts (TKAP) will put in Rs 4,100 crore while a related company -- Toyota Industries Engine India (TIEI)-- will pitch in with another Rs 700 crore.
TKM and TKAP on Saturday inked a Memorandum of Understanding (MOU) with the Karnataka government in this regard.
The announcement coincides with automaker's 25 years of presence in India.
''Toyota Group and TIEI together would be making an investment of around Rs 4,800 crore. We are doing this in the spirit of 'go green, go local' and our aim is to contribute to our country's mission of faster reduction of carbon emissions and make in India,'' TKM executive vice president Vikram Gulati told PTI in an interaction.
In-addition to boosting the local manufacturing eco-system, the new development will provide an impetus to employment generation and local community development, he added.
''Just from the group companies (TKM & TKAP), from a direct employment point of view, we are looking at around 3,500 new jobs. Of course, as the supply chain system builds, we expect much more to come in later,'' Gulati said.
The automaker plans to utilise its existing facilities in the state to produce the components, he noted.
''We would be aiming at both domestic and global markets. We are moving towards a completely new area of technology which is electrified powertrain parts,'' Gulati said.
When asked about the timeframe for the start of production, he said: ''While I cannot get into the specifics, it's going to be very near-term.'' Gulati said Toyota has all the electrified technologies and it believes in taking up all which not only meet consumer requirements but are also aligned with the government's national objectives.
''We believe that electrification is beginning to take off. There are still challenges around it, but the key to moving towards faster electrification would be to take steps like the ones we're taking now. To build local ecosystems, local capabilities, local competitiveness and through that to try deliver all these technologies at an affordable cost,'' he said.
Gulati was replying to a query if Indian market is now ripe for the electric vehicles.
He commended both the Union and Karnataka governments for pushing electrification in the country.
''If you look at both demand side and supply side, a lot of effort is going on... Our belief is that all technologies, electrified or others, that help to promote national goals should be promoted in a proportionate manner,'' he noted.
Speaking at the MoU signing event, TKM vice-chairman Vikram S Kirloskar said the development is a very important milestone in terms of ushering in large-scale investment to make deeper cuts in carbon emissions, higher employment generation, creating local manufacturing hub not only for domestic needs but also for global markets, local community development and advancement in innovation.
''I believe that such investments are needed to provide technologically viable and economically competitive alternatives to fossil-fuel-intensive technologies in vehicle mobility space,'' he stated.
The company always conducts deep studies, analyse and explore multiple technological pathways that are best suited to optimally achieve the national goals on lowering dependence on fossil fuels, Kirloskar said.
''Toyota believes that the choice of technologies for achieving our national goals should be practical, sustainable, best suited for unique local conditions that helps to realise the transition in the fastest possible manner,'' he noted.
The company believes in holistic approach and aims to strongly contribute to the state and country's sustainable growth, and is confident in creating an electrified manufacturing hub in India, Kirloskar said.
Toyota group companies have already invested Rs 11,812 crore and employ more than 8,000 people, he added.
The MoU was exchanged between Karnataka chief minister Basavaraj Bommai and Kirloskar in presence of minister of large and medium industries Murugesh R Nirani and senior government officials.
Speaking at the event, Bommai said the government wants to make Karnataka a global supply-chain and manufacturing hub ''under our 'build for the world' mission''.
''This MoU with Toyota group of companies is a huge stride in this regard, and the Karnataka government is confident of Toyota's commitment towards sustainable growth for state's growth and development,'' he noted.
(With PTI inputs)