Japan-based Aoyama Seisakusho, a key supplier of screws and fasteners to leading car brands, has signed a memorandum of understanding (MoU) with the Karnataka government for the establishment of a manufacturing facility. The unity will come up in the Japanese Industrial Township in Tumakuru, over a 20-acre plot which has been shortlisted for the purpose.

State Minister for Large and Medium Industries and Infrastructure Development MB Patil while assuring the state’s commitment to creating industrial growth and international partnerships, further informed that Karnataka's e-mobility policy offers a 15-25 percent capital subsidy and a one percent production linked incentive (PLI) for a period of five years, for companies in the electric vehicle (EV) and clean mobility sectors.

The Minister also met key representatives from Toyota Motor Corporation and highlighted the close collaboration between Toyota Kirloskar Motors (TKM) in Karnataka. The Karnataka government assured Aoyama Seisakusho of full support in acquiring the land and resolving any future issues one might face.

The government is now developing a new clean mobility policy. The state has identified two major clusters for ecosystem development in Gauribidanur and Dharwad, aiming to bolster the clean mobility sector.

The discussions also explored the potential of biofuels in hybrid EV technology, particularly ethanol-based fuels, leveraging Karnataka's sugarcane production, as well as the new 20 percent ethanol blending mandate.