Karnataka gives tax sops to Toyota’s second car plant

June 23rd, 2011 - 10:30 pm ICT by IANS  

Bangalore, June 23 (IANS) The Karnataka government Thursday extended tax concessions to the Japanese auto joint venture Toyota-Kirloskar Motor Ltd (TKML) for its second car plant at Bidadi in the state.

“The cabinet has decided to give Rs.9 crore tax relief to the Toyota joint venture on import of tools and machinery valued at Rs.450 crore. With this, cumulative tax concessions extended to the company during the last two years will be Rs.89 crore,” state cabinet minister V.S. Acharya told reporters here.

The state government granted Rs.80 crore tax concession in 2009 when Toyota started constructing its second plant to roll out luxury cars for the Indian market.

“Toyota has committed to invest Rs.4,043 crore in its second plant to manufacture Etios car in hatchback and sedan versions, with an installed capacity of 70,000 units per annum,” Acharya said.

The company, which rolled out Etios sedan in December 2010, is scheduled to launch its hatchback version Etios Liva June 27 in New Delhi.

In the first plant that was set up in 1998 with an installed capacity of 80,000 units per annum, the world’s largest automaker manufactures the multi-utility vehicle Innova, sports utility vehicle Fortuner and sedan Corolla Altis.

Toyota’s Indian subsidiary also imports Camry, Prado, Prius and Land Cruiser in the form of completely built units.

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