Bangalore, April 28, 2023 (GNI): Toyota Kirloskar Auto Parts (TKAP), welcomes the important announcement by the Ministry of Heavy Industries (MoHI) towards Standard Operating Procedures (SOPs) for the Auto Sector Production Linked Incentive (PLI) scheme. With this, companies can now submit applications for testing and certification of Advanced Automotive Technology (AAT) products enabling them to be considered for incentives under the PLI Auto scheme.
Toyota Kirloskar Auto Parts Private Limited (TKAP), established in 2002, is engaged in the manufacture and sale of automotive rear axles, propeller shafts, and transmission units. Recently, the company set up an advanced manufacturing facility to produce e-Drives which is a key part of electrified powertrain for supply to Toyota Kirloskar Motor Private Limited and for export to Japan and other Asian countries. Over the years, TKAP has grown rapidly to emerge as a significant manufacturer of Drive Train parts and assemblies (x-Ev Transmission) in the Toyota group.
Aligned with Toyota’s commitment towards achieving ‘Mass electrification’ with ‘Make in India’ not only for India but also exports, the group recently invested INR 4,100 crores involving Toyota Kirloskar Motor (TKM) and Toyota Kirloskar Auto Parts (TKAP) which includes investment towards setting up of the new e-Drive (electrified component) manufacturing line in Bidadi near Bengaluru. The new facility, first in Asia outside of Japan, has an annual installed capacity of 135,000 units making it the best-case point of India’s emergence as a global manufacturing hub which is of strategic importance.
Acknowledging Government’s dynamic approach in promoting localization through well-thought out PLI schemes, K N Prasad, Managing Director, Toyota Kirloskar Auto Parts, said, “We thank the Government of India for the announcement of SOPs for the Auto Sector PLI scheme. The SOPs released from MOHI, consist of simplified procedures with minimum paperwork as a standing testimony from MOHI to realize “Ease of doing business”. This definitely reduces the burden on the applicant and helps to speed up the overall process of application and approval process.
At present, most of the advanced automotive technology components are being imported because of non-existent supply chain base. One of the key factors to get incentives under this PLI scheme is minimum domestic value addition criteria, and this will encourage more localisation and will boost domestic manufacturing sector and reduce dependence on imports, thereby creating more job opportunities. It would also contribute to the overall economic growth of the nation and enhanced export capabilities.
TKAP is extremely proud to contribute to the localization of advanced technology in the Indian Automotive Sector. Our recent investments in TKAP have helped in creating job opportunities and contributing to the development of the local community.”
Commenting on making India a global hub for electrification, Mr. Vikram Gulati, Country Head and Executive Vice President of Toyota Kirloskar Motor, said, “We strongly believe that India is well positioned to play an important role in contributing to the growing global shift towards electrification. Given the capability of Indian auto industry and the strong continued Government support, we are well on the way to make visible progress in establishing India as a critical manufacturing hub of advance, clean, green and efficient vehicles along their parts, at competitive prices. Schemes like the Production Linked Incentive (PLI) is playing a vital role in attracting investments in advanced and greener technologies,” stated in a press release.ends GNI SG
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