Top automobile player Toyota has announced to halt its expansion plans in India. Toyota is a Japan-based automaker. The firm has cited the high tax regime as a reason behind its decision. The company in a statement, however, said that it will not exit the Indian market. The statement added that India will remain an integral part of the company’s global business strategy. It promised to protect the jobs in the country and take every possible measure to meet this goal. Toyota is among the world’s biggest carmakers. Toyota entered India’s market in 1997. Its India unit is owned 89 percent by the Japanese firm.
Toyota’s decision is seen as a big blow to Prime Minister Narendra Modi’s effort to make India a destination for global firms to invest. Cars, two-wheelers, and SUVs attract 28 percent tax in the Southeast nation. Toyota said that high taxes make it difficult for companies to scale up their operations in the country. Toyota said that the auto industry requires government support during the slowdown due to the Covid-19 outbreak. It also acknowledged the government’s help for various sectors to push the economy. It exuded confidence that the Indian government will take proactive steps to support the auto sector.
The auto sector in India requires a revisit by the government. It is not in a good shape as companies are struggling to survive. Reports suggest that India is planning to offer incentives. It is aimed at encouraging companies to set up manufacturing plants in the country. Besides Toyota, several others have also said that they are struggling. Local manufacturers such as Maruti Suzuki and Force Motors too have expressed similar sentiments. India in the last two years lost two American automobile manufacturers. They are General Motors and Ford Motor. General Motors left India in 2017, ending its 21 years of service. Ford Motor merged its business with Mahindra & Mahindra. Ford Motor said it failed to impress Indian buyers.
Carolyn is a technology graduate and loves to write about anything related to technology as well as writes in others sectors. Carolyn is a professional writer with over 7 years of experience. Initially starting off as a programmer, Carolyn decided to combine her knowledge about technology and writing and that’s how she joined Reporter Expert.