The Indian car marker at present is not witnessing the expected net sale profits; the main reason is because recession has hit the country harder than before. The Indian subsidiary of the Japanese headquartered firm, Toyota Kirloskar Motor Private Limited, is not too optimistic about a turnover of sale events till second portion of coming fiscal.
A highly designate company representative announced, that Toyota’s domestic sale output is expected to be shallow, compared to the profits acquired last year. Vikram Kirloskar, the Vice Chairman of Toyota Kirloskar Motor stated, ‘’ our team is positive about maintaining a continuous growth momentum, as most of our profits were gained from exports. At present, the domestic segment foresees lower sales than what is expected, but we have noted admirable fortunes in export segment.’’
During the 2012 to 2013 period, Toyota Kirloskar Motor Indian rolled out about 190,000 vehicles in passenger segment. At its established Bidadi unit situated close to Bangalore, Toyota Kirloskar Motor installed 310,000 pieces on an annual basis. During the initial 8 months of present fiscal which terminated in November, TKM rolled out 88,947 pieces and this is a 17.56% dip compared to the figures obtained in earlier fiscal.
Toyota to a media representative said, we had to lower the company’s production output compared to installment capacity. We had to go ahead with this procedure to maintain the increased demand levels accordingly. At present we are in the process of providing extra training to workforce and create a stronger work momentum. Toyota Kirloskar Group at present enjoys a decent 11% stake in Toyota Kirloskar Motor Limited, and the parent headquartered firm has an 89% share holding in TKM.
The company had to deal with overload of inventories at its dealerships, Toyota Kirloskar had to set up production units during the holidays, which is 8 days on a monthly basis, and had to shift its operation procedures in the month of October in two of its Bidadi manufacture units.
TKM will announce of its new projects at the prestigious auto event in Delhi in Jan 2014. The main element of discussion would be the company’s plans to enhance its profit sale output in the near future. The company made it clear that it does not forecast a drastic turnover of events in terms of acquiring more than expected impressive sale outcomes. According to TKM, there is no scope for harsh positive sale rebounds in the coming years.
Toyota has recently launched its most awaited new Land Cruiser Prado model, Land Cruiser Prado is a key profit player for Toyota, and is in the most appreciated top brand car list. Toyota Land Cruiser Prado is a classic piece inside out, draped in exotic luxury and sporty material and the insides are packed with high tech twenty first century features.
The Indian car market at present is forced to bear the harsh impact of recession, which had lead to a chain of undesirable events like increase in fuel and commodity rates. Toyota Kirloskar Motor is not too certain about a drastic change of events. Car companies in India will have to manage with the existing resources, and TKM has worked out smart strategies by enhancing its export capacity.