Toyota says it manufactures EV parts in India for domestic and export markets

Toyota plans to make India a manufacturing hub for electric vehicle parts to meet local demand as well as exports to Japan and some ASEAN countries, a company executive told Reuters.

The automaker plans to start producing EVs, or electric powertrain parts, to be used by various types of electric vehicles, including battery EVs, plug-in hybrids and other hybrid models, said Vikram Gulati, executive vice president at Toyota Kirloskar Engine.

“The goal is to make India the manufacturing hub for cleaner technologies. This is about creating the building blocks,” Gulati told Reuters.

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

The move follows the company’s recent announcement of investing Rs. 4,800 crore in India to localize the electric vehicle supply chain and is also part of broader targets of carbon neutrality by 2050.

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

The bulk of the investments in India will be made by Toyota’s local unit, Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts (TKAP), a joint venture between Toyota Motor, Aisin Seiki and Kirloskar Systems, the company announced on Saturday.

The world’s largest automaker announced in December that it plans to build $70 billion in cleaner vehicles by 2030.

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

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

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

Toyota expects this will allow India’s auto industry to make a “quicker and smoother” transition to electric vehicle technology, he added.

© Thomson Reuters 2022 Toyota says it manufactures EV parts in India for domestic and export markets

Ryan Sederquist

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