India

As Minister Flags Toyota's "No Expansion", Clarification On "Investment"

As Minister Flags Toyota's

Toyota earlier said high taxes push cars out of reach for many consumers.

New Delhi:

The government and the Indian unit of Toyota Motors have both played down reports that the auto giant has decided against expansion in the country due to the high tax regime. Union Minister Prakash Javadekar tweeted to say that Toyota will invest more than Rs 2,000 crore in the country over the next year. It was confirmed by Vikram Kirloskar, the vice-chairman of Toyota Kirloskar Motor, who said the company is "committed to the future of India"."The news that Toyota Company will stop investing in India is incorrect. @vikramkirloskar  has clarified that Toyota will invest more than Rs 2000 crore in next 12 months," read the tweet by the Union Minister.

In an interview earlier today, Shekar Viswanathan, vice chairman of Toyota's local unit, Toyota Kirloskar Motor, said high taxes in the country keeps cars outside the reach of a majority of consumers.

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This means that factories are sitting idle and jobs aren't created, he said.

"The message we are getting, after we have come here and invested money, is that we don't want you," Mr Viswanathan said. In the absence of any reforms, "we won't exit India, but we won't scale up," he added.