The government and the Indian unit of Toyota Motors have both played down the auto giant’s decision against expansion in the country due to the high tax regime. Union Minister Prakash Javadekar tweeted today 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, who is in charge of the heavy Industries portfolio.
In an interview earlier today, Shekar Viswanathan, vice chairman of Toyota Kirloskar Motor, Toyota’s local unit, said high taxes in the country keeps cars outside the reach of a majority of consumers. This means that factories are sitting idle and jobs aren’t created, he said.