Toyota Motor Corporation has overturned the statement not to expand its business in the country. On Tuesday, the auto manufacturer said that it is committed to the Indian market and its Indian unit has announced an investment of more than 2,000 crores. The company gave the reaction after media reports in which a top officer of the company said that the company will stop its expansion strategy as the tax on cars in the country is very high.
"Toyota Kirloskar Motor would like to state that we continue to be committed to the Indian market and our operations in the country is an integral part of our global strategy. We need to protect the jobs we have created and we will do everything possible to achieve this. Over our two decades of operations in India, we have worked tirelessly to build a strong competitive local supplier eco-system and develop strong capable human resources. Our first step is to ensure full capacity utilization of what we have created and this will take time. In wake of the slowdown that has been exaggerated by the COVID-19 impact, the auto industry has been requesting the Government for support to sustain industry through a viable tax structure".
"We remain confident that the Government will do everything possible to support the industry and employment. We recognize the strong proactive efforts being made by the Government to support various sectors of the economy and appreciate the fact that it is open to examining this issue despite the current challenging revenue situation. Our recent partnership with Suzuki in India on sharing technology and best practices are also in support of the “Make in India” initiative and Indian Government’s policy, and aim to enhance the competitiveness of both companies". Prior to Vikram Kirlokar's statement, Shekhar Vishwanathan, Vice Chairman of Toyota's Indian unit Toyota Motor, had said that the government has imposed more taxes on cars and motorcycles, making companies facing a lot of difficulties in increasing their business.
He said, "Due to higher taxes, vehicles are getting out of the reach of users. It also means that factories will not work and jobs will not be created". According to the report, Vishwanathan, in an interview, said on the issue of higher taxes and business, "After we came and invested, we got a message that "We don't want you". Toyota ranks among the world's largest automobile companies. Now, the company's statement has confused everyone.