Automobile Sector had already slowed down in India, even before the novel Corona Virus had eaten the Indian Economy. On 15th September, 2020 there were rumors and floods of news in media stating that Toyota Kirloskar Motor is deciding to stop its expansion in India. Here’s how the news began –
How did it all began?
It all began from an interview (with Bloomberg) of Shekar Vishwanathan who happens to be the Vice Chairperson of Toyota’s local, Toyota Kirloskar Motor. He said in the interview that Toyota won’t exit India but will not do any further expansion in India due to the punitive taxes on the Automobile Sector.
After this, there was a flood of Tweets from people around India, criticizing Indian Government and its tax policy.
Clarification from Toyota Head and Prakash Javadekar
After a heavy flow of Tweets, Prakash Javadekar, Minister of Heavy Industries & Public Enterprises clarified that Toyota India is not only going to expand further in India but it is going to invest 2000 Cr in India. Here’s what his Tweet said –
Further, Vikram Kirloskar, Vice Chairman, Toyota Kirloskar Motor came forward and told the media that “Toyota’s focus is on technology expansion & localization & is investing 2000+ crs for the same. I believe that a GST readjustment is required in the future to encourage green mobility. Carbon-based tax will also make the Indian industry more competitive.”
His Tweet clarified more on the rumors and he said that the ‘total volume capacity’ is not expanded further but investments will be made for sure in the near future.
It is high time that the news media should understand the statements from the Spokesperson of the company and then write something on it. Interestingly, the share price of Kirloskar Industries after this news broke out had a fall down from 673 INR to 658.70. It is prevalent that from this single news, the stocks went down for Kirloskar Industries in India.