New Delhi: Auto major Toyota Kirloskar Motor is planning to consider bringing some of the key suppliers from its global network to set up manufacturing units in India.
The discussion came after the government’s announcement to slash corporate tax as it can help the company avail the benefits for new manufacturing units, as per a report by Business Standard.
As per the new tax structure, the corporate tax levied is 17.16 per cent.
This is further help the company to source parts locally and cut down on import bill. Meanwhile, Toyota is also looking to establish a separate entity for manufacturing electric and hybrid vehicles, the report said.
The company is focusing on making the most of the opportunities and come up with new production and expansion plans. However, the final decision will be made after analysing all aspects as “lower tax was just incidental to the entire business plan.” Localisation has to be done after careful evaluation of the process and in consideration of the product quality.
The company had also introduced a cost reduction program where it had been sourcing some parts from local suppliers. With the new announcement, it will encourage the global suppliers to set up in India.
Currently, the company’s locally procured parts ranges from 60-85 per cent.