India’s economy has long been touted to investors as the next China. Toyota thinks so for electric vehicles. It plans to invest heavily in making EV parts in India. For the Japanese carmaker, which counts US and China as core overseas markets, this move makes sense.
Toyota’s 48bn rupees ($624mn) investment will focus on producing electric vehicle parts. Toyota has trailed peers in the move to battery electric vehicles. Yet on 11 times forward earnings, the carmaker has double the multiple of German peers such as Volkswagen, well ahead in battery EVs.
India, too, wants to make up for lost time, with plans for 30 per cent of all new cars sold to be electric by 2030. Toyota has its sights set on selling 3.5mn electric vehicles globally by 2030.