New Delhi, September 15: With the report of Toyota Motor Corp. not going to expand further in India due to the country's high tax regime, Union Minister Prakash Javadekar had quashed it by stating that the claim is false. He even stated that Toyota will invest more than Rs 2000 crore in the next 12 months.

According to a report, published by Bloomberg, Vice Chairman of Toyota's local Unit Shekhar Viswanathan had said that Union government had been increasing the taxes on cars and motorbikes due to which companies are finding it hard to build scale. He even stated, "We won't exit India, but we won't scale up." Auto Companies See Sales Revival in August, Maruti Suzuki and Hyundai Led With 20.2% and 19.9% Increase.

Quashing the report, Union Minister of Heavy Industries Prakash Javadekar took to Twitter and wrote, "The news that Toyota Company will stop investing in India is incorrect. @vikramkirloskar has clarified that Toyota will invest more than Rs 2000 crore in the next 12 months."

Here's what Javadekar said:

The Union Minister was supported by Vice Chairman of Toyota Kirloskar Motor Vikram Kirloskar, who took to Twitter and wrote, "Absolutely! We are investing 2000+ crs in electric components and technology for the domestic customer and export. We are committed to the future of India and will continue to put all effort in society, environment, skilling and technology."

Adding more, he wrote, "We are seeing the demand increase & the market recover slowly. The future of sustainable mobility is strong here in India & Toyota is proud to be part of this journey. We are investing 2000+ crs towards the electrification of vehicles and helping build a strong India!"

Here's Vikram Kirloskar's tweet:

As per reports, motor vehicles including cars, two-wheelers and sports utility vehicles in India attract taxes as high as 28 per cent. Based on the car's type, length or engine size, additional levies are charged that may range from 1 per cent to 22 per cent. For a four-metre SUV with over 1500cc the taxes may reach to 50 per cent.

Fact check

Toyota Motors Not to Expand Further in India Due to High Tax Regime? Union Minister Prakash Javadekar Quashes Fake Report
Claim :

Toyota Motors Not to Expand Further in India Due to High Tax Regime

Conclusion :

The report is false as Union Minister of Heavy Industries Prakash Javadekar said that Toyota will invest more than Rs 2000 crore in the next 12 months.

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(The above story first appeared on LatestLY on Sep 15, 2020 07:50 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).