Toyota aims to improve its market share in India; the firm has not been able to generate desired sale outcomes for months caused by constrained auto economy. To strengthen its market share, Toyota plans to expand its network to rural segments. There is a significant difference between city and town life in India, in order to understand the tastes and needs of town demographic, Toyota intends to emerge with a strategy to understand the needs and life of Indian towns.

Toyota has formatted a strategy to reach out to the cities, and plans to go about it strategically. To do this, the firm has compartmentalized its goal into many segments such as segment-wise, non-mega city and mega city. There are signs of growth in certain areas; Karnataka has a 14% market share, much larger than 4 to 5% market share observed with pan-India. The company is confident that the new government will formulate effective policies that will lead to drastic market improvement. Auto companies are hopeful that the government will continue with its reduced excise duty policy scheme introduced in February this year.

The company has been in a state of turmoil with massive strikes at its established Bidadi unit. It was a month long and beyond unrest episode, the situation has returned to normal. Toyota has introduced a couple of new products in May, Etios Cross and new Corolla Altis. The two cars are built to cater to a large audience, a requirement to expand sale networks during the present troubled economy. It was a well strategized plan, the demand for both models are over the top that has enabled the firm to record impressive 6% gains in May 2014. It is a great achievement since it’s only a month since the launch of both cars.

The market environment in the country has not been so favorable, the rupee had depreciated to a considerable level against the dollar, and the value hit the over Rs 62 limit. The value has now appreciated to Rs 59; the depreciation was a major sale hindering factor. Toyota worked on localization goals to elevate its sale network, and is seen to increase its localization output to a greater level by 50%.

The month of May has been a mixed bag for auto firms, because of slight improvements in market environment. Maruti Suzuki, Toyota, and Hyundai have recorded impressive gains. There are few firms like Mahindra and Tata Motors that are still under the crux of depressed economy.

Toyota has generated waves of excitement with its new Corolla Altis and Etios Cross. Etios Cross is a cross version of Liva hatch, the cross identity is highlighted by the fitment of plastic cladding, silver roof rail and bull bar. The insides too are exceptionally unique and vibrant with glossy jet black décor. The new Altis is an improvement from the past, it sports a superior design, and the insides too are equally appealing. An exciting interior feature to look forward to is seven inch touch screen.

Toyota’s imitative to push its product portfolio to the small city and town market is a good move to increase its domestic sale output and localization needed under the present not so favorable economy.

Tagged: Toyota Cars India