Toyota Counts India As Next EV Destination, Observes GlobalData
Following the news that Toyota Group India has signed a MoU with the Government of Karnataka (India) to invest US$530m in electric vehicles (EVs);
Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view:
“Toyota Group’s investment will boost the electric vehicle (EV) manufacturing ecosystem in India. It is evident that the Indian EV industry is gaining momentum and most of the existing auto OEMs currently aspire to be in the race. Presently, domestic automaker TATA Motors has been the frontrunner in the Indian EV market, but slowly Japanese passenger vehicle OEMs are also gearing up with the establishment of R&D, production facilities, component manufacturing and required supply chain to bring in more EVs to the Indian market in passenger EV segment.
“Maruti Suzuki recently shared its EV roadmap that aims an EV for India by 2025. Honda Motors has also recently launched hybrid version of its flagship car in India, Honda City.
“The investment comes as a part of Toyota’s global strategy that aims carbon neutrality by 2050. The company aims to establish a robust EV supply chain in India to cater both domestic and export needs. However, the company has been already manufacturing its hybrid car Camry in India since 2013, making it a EV pioneer in India in true sense. Established HEV production capabilities and supply network will offer added advantage to the company.
“Toyota also has a global EV alliance with Suzuki Motors and it was much speculated that the two will launch an affordable EV model for India with a shared platform. GlobalData’s Hybrid and Electric vehicle forecast data anticipates EV launches from Toyota in the second half of this decade that would potentially include a B-segment SUV and a sedan EV. Also, EV version of Maruti Suzuki’s rebadged models Glanza and Urban Cruiser is also expected by 2030.
“Toyota remains a global leader in EV with US$70bn committed over next decade to launch 30 new EV models. Toyota EV investments in India comes as a win-win given the government’s Production Linked Incentives (PLIs) for manufacturing and various demand-side incentives to promote sales.”