Union Minister Prakash Javadekar on Tuesday denied a report that Toyota Motor Corp would not expand further in India due to the country’s high tax regime. “The news that Toyota Company will stop investing in India is incorrect. @Vikramkirloskar has clarified that Toyota will invest more than ₹2000 crore in the next 12 months, “Javadekar wrote on the social media platform.
Commenting on Javadekar’s statement, Vikram Kirloskar, Vice President of Toyota Kirloskar Motor, said: “Of course! We are investing more than 2,000 crs in electrical components and technology for domestic customer and export.”
To clarify that Toyota has not stalled investments in India, Kirloskar said, “Toyota is proud to be part of this journey.” “We are committed to the future of India and we will continue to put all our effort into society, environment, skills and technology,” he added.
“We see demand increasing and the market slowly recovering. The future of sustainable mobility is strong here in India,” said Toyota Vice President Kirloskar Motor.
Toyota, one of the world’s largest automakers, started operations in India in 1997. Its local unit is 89% owned by the Japanese company. In the statement, the company said: “Our first step is to ensure the full capacity utilization of what we have created and this will take time.”
“Toyota remains committed to the Indian market and its operations in the country are an integral part of Toyota’s global strategy,” he added.
“We need to protect the jobs we have created and we will do everything we can to achieve this. During our two decades of operations in India, we have worked tirelessly to build a strong competitive local supplier ecosystem and develop strong and capable human resources,” said the manufacturer. Of automobiles.
There have been reports that Toyota Motor Corp. will not expand further in India. “The government keeps taxes on cars and motorcycles so high that companies find it difficult to scale up,” said Shekar Viswanathan, vice president of Toyota’s local unit, Toyota Kirloskar Motor, according to Bloomberg report. Car sales in India were weathering a slump ahead of the coronavirus pandemic.
“The message that we are getting, having come here and invested money, is that we don’t want it,” Viswanathan said in an interview. In the absence of reforms, “we will not get out of India, but we win.” ‘t scale, ” Bloomberg reported.
“Market India always has to precede Factory India, and this is something that politicians and bureaucrats don’t understand,” Viswanathan said. Bloomeberg.
In India, motor vehicles, including cars, two-wheelers, and sport utility vehicles (though not electric vehicles), attract taxes of up to 28%. On top of that, there may be additional taxes, ranging from 1% to 22%, depending on the type, length, or size of a car’s engine.
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