Copyright FOURIN, Inc. 2023
Toyota Motor’s Business Developments in India’s EV Sector
In July 2022, Toyota Motor began selling the Urban Cruiser Hyryder in India. The vehicle is a strong hybrid compact SUV developed by Suzuki Motor. The Urban Cruiser Hyryder is positioned between Toyota’s Fortuner, a midsize SUV, and the Urban Cruiser, a compact SUV supplied by Suzuki on an OEM basis.
Toyota plans to invest a total of 48 billion INR to build a “local production for local consumption” system for electric vehicles. In June 2022, a production line for electrified parts went into operation at Toyota Kirloskar Auto Parts, which is a Toyota Group company that produces automobile parts. The plant is intended to supply hybrid system parts for the Hyryder among other models.
Toyota Motor: Recent Trends in India’s EV Sector
PLI scheme covers parts makers
・In March 2022, two companies, Toyota Industries Engine India (TIEI) and Toyota Kirloskar Auto Parts (TKAP), were selected in the automobile parts field by the Indian government's production-linked incentive (PLI) scheme.
- Under the scheme, subsidies are provided for electrified products, ADAS and connected-related solutions that will be produced in the five years from April 2022.
- There is a high possibility that investment will be made to produce such products in the future.
Investment in electrification
・In May 2022, Toyota Kirloskar Motor (TKM) announced that it would invest 48 billion INR in the area of electrification with two other Toyota group companies in India.
- Investment is expected to be made in the existing plants of the three companies in Karnataka state.
- The two group companies that will invest with TKM are parts supplier TKAP and engine maker TIEI.
- The investment target is related to electrification, but the actual product has not been revealed.
New production line for electrified products
・In June 2022, TKAP commenced operation of an electrified parts production line which has an annual production capacity is 135,000 units.
- This project is part of Toyota's above-mentioned 48 billion INR investment plan.
- The parts to be produced are planned to be supplied overseas as well. TKAP aims to become a globally competitive parts production base.