Toyota Bets Big on BEV Prospects in India

Paul Myles

TU-Editor

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10th May 2022

Toyota is betting on India becoming the next global hot-spot for EV adoption following its $530M investment in the country.

That’s the view of GlobalData’ senior automotive consulting analyst, Bakar Sadik Agwan, following the news that Toyota Group India has signed a MoU with the Government of Karnataka (India) to invest in EV production. Agwan says the automaker is responding to the Indian market’s growing interest and appetite for EVs.

He said: “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.”

Agwan added that the investment by Toyota also sits well with its strategy targeting carbon neutrality by 2050. He concluded: “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 EV investments in India comes as a win-win given the government’s Production Linked Incentives for manufacturing and various demand-side incentives to promote sales.”

— Paul Myles is a seasoned automotive journalist based in Europe. Follow him on Twitter @Paulmyles_