Corporation tax cut: Toyota plans to bring key global suppliers to India

Toyota may set up a separate entity for electric, hybrid vehicles

Toyota Kirloskar Motor will consider getting some of the key suppliers in its global sourcing network to set up manufacturing units in India as the company seeks to avail of benefits of a lower corporation tax that new manufacturing units are now eligible for, a top company executive said.

After the latest tax cut by the government, new manufacturing units will pay tax at 17.16 per cent. Part of the tax saving could be passed on to customers like Toyota.

The import substitution will also help the Indian arm of the Japanese car maker to source parts locally and thereby cut its