Toyota is considering setting up an auxiliary manufacturing facility in India in order to benefit from the rise of New Delhi as a manufacturing hub and to reduce its excessive reliance on China for supply.

The Japanese manufacturer wants to expand its supply chain independently to India. Currently, Toyota and Toyota Kirloskar are partners in a joint venture (JV) that runs in India.

To manufacture parts for electric vehicles (EVs) in India, the Toyota Group intended to invest Rs 4,800 crore (USD 624 million) in 2022. This was done in an effort to become carbon neutral by 2050.

Toyota Kirloskar Motor and Toyota Kirloskar Auto Parts signed a memorandum of understanding (MoU) with Karnataka to invest Rs 4,100 crore.