- Toyota clarifies statement not to expand its business in India
- The company said that it is committed to the Indian market
- Will invest more than 2,000 crores in next few years
Japan’s auto giant Toyota Motors Corp has clarified the statement that it is not expanding business in India. The company says it is committed to doing business in India and achieving its goals in India. For this, the Toyota Group will invest Rs 2,000 crore in the coming years on technology and electrification. It will be used for domestic and export markets.
Masakaju Yoshimura, managing director of Toyota Kirloskar Motor, said in a statement that his company is committed to its business in India. The company has full confidence in India’s economic prospects and is dedicated to contributing for this. The company has been doing business in India for the last two decades and during this time it has worked in the spirit of ‘Grow India – Grow with India’.
Investment of more than 2000 crores rupees
He said that the company’s business in India is part of its long-term global strategy. The company will invest more than Rs 2000 crore in India in the next few years. The company will make every effort to promote new, clean and world-class technology and services in India.
What was the dispute
It is noteworthy that Shekhar Viswanathan, vice chairman of Toyota Kirloskar Motor, a local unit of Toyota, recently said that the company will not expand its business further in India. He blamed higher tax in India for this. His statement was seen as a major setback for the Modi government. Prime Minister Narendra Modi has been continuously trying to woo foreign companies to fix the economy that has been damaged due to coronavirus infection.
Vishwanathan said in an interview, ‘The message we got after coming here and investing money is that we don’t need you.’ He said that due to no tax reforms, the company will not come out of the Indian market but will not expand its business. Toyota is one of the largest car companies in the world. It started its business in India in 1997. The Japanese company holds an 89 per cent stake in its local unit. According to the Federation of Automobile Dealers Association data, the company’s market share in the Indian market fell to just 2.6 per cent in August 2020 from 5 per cent a year earlier.