Toyota plans to go solo to set up auto ancillary manufacturing unit
Toyota, Japan’s most-valued company that has had a relatively circumspect local presence in comparison with compact-car leader Suzuki, is considering setting up an ancillary business in India, tapping into New Delhi’s emergence as a manufacturing hub as the world seeks to reduce a hitherto disproportionate China-centric supply reliance. «Toyota wants to bring their supply chain to India,» a person aware of the talks told ET. «That conversation is slowly opening up.
It will mostly be for auto ancillaries. They have one facility as a joint venture with Toyota Kirloskar. This one they want to do as a standalone.» Japan’s largest carmaker, and only the second automotive company besides Tesla to feature on the list of the world’s top 50 companies by market capitalization, operates in India with a joint venture with Kirloskar.
A spokesperson at the India unit declined to comment, saying the query pertains to “future business plans.” Last year, Toyota Group planned to invest Rs 4,800 crore ($624 million) to make electric vehicle components in India, seeking to achieve carbon neutrality by 2050. Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts signed a memorandum of understanding with the southern state of Karnataka to invest Rs 4,100 crore, the group had said in a statement. The rest will come from Toyota Industries Engine India.
«The Japanese management of Toyota is having preliminary conversations to set up a facility in India mostly around ancillaries. Discussions took place last month and further dialogue is awaited,» another source told ET. Toyota has been aggressive in its EV strategy as it announced plans to introduce 10 new EV models by 2026 and sell 3.5 million Battery Electric Vehicles (BEVs) globally by 2030.In
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