Toyota plans to invest $ 624 million to produce electric vehicle parts in India

Toyota Group plans to invest 48 billion rupees ($ 624 million) to do electric vehicle components in Indiaas the Japanese automaker works for carbon neutrality by 2050.

Toyota Kirloskar Motor e Toyota Kirloskar car The parties signed a memorandum of understanding with the southern state of Karnataka to invest Rs.41 billion, the group said in a statement Saturday. The rest will come from Toyota Industries Engine India.

Toyota is aligning its green goals with India’s ambitions to become a manufacturing hub even as the shift to clean transportation in the South Asian nation is slower than in other countries such as China and the U.S. High prices, lack of options in electric models and insufficient charging stations have led to a slow adoption of battery-powered vehicles in India.

“From a direct employment perspective, we are looking at some 3,500 new jobs,” Toyota Vice President Kirloskar Vikram Gulati said in an interview with the Press Trust of India. “As the supply chain system develops, we expect a lot more to come later.”

Electric vehicle sales in India doubled thanks to battery-powered scooters

Indian automakers could generate $ 20 billion in electric vehicle revenue by fiscal year 2026, according to Crisil forecasts. By 2040, 53% of new car sales in India will be electric, compared to 77% in China, according to BloombergNEF.

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