Toyota stops car production in India

Japanese brand Toyota have officially put production of their vehicles in India to a halt. There was a dispute of wages paid for staff in the two factories that currently reside in India which left the brand no other alternative than to stop production for now altogether. The two factories are located just outside of Bangalore and around 700 vehicles from Toyota are produced there on a daily basis. Altogether we see that 6,400 member of staff will be affected by this 'lockout' as they are stating it to be. It has been stated that Toyota bosses were concerned over the health and well being of their workers in the two Indian factories as supervisors were being threatened and abuse of staff had a big role to play in the final decision.

Wage negotiations within Toyota's Indian factories

Negotiations over all members of staff between the two factories have been going on for a time of around the past ten months in total and last year alone around 1.6 percent of Toyota's sales were thanks to these two factories.

Just last week within the Toyota firm in Japan,pay rises were officially issued to all of their members of staff and has been the first time in 21 years that this has happened over there. Toyota employees in Japan earn 2,700 yen which as a 0.8 percent increase than the previous year for Toyota Japan. Each month it has been stated that some of their employees could earn at most around 7,300 more yen depending on various promotions for different members of staff.

A big majority of the reason for wage increases within Toyota Japan are that in April of next year the amount of tax paid in that country is set to rise a vast amount. Other Japanese companies also received extra income such as the Nissan car brand and technology designers Panasonic.

Are Toyota right to halt production in India ?

Well for the health and safety of the staff between the two factories we certainly believe so yes. As far as staff negotiating on wages for the course of the last ten months, it may be understandable as Japan Toyota have received a wage increase. There is currently no word yet as to when production will once again begin over in India but we will keep you informed on any new information coming in regarding the situation.