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Toyota strategy for India
After a decade of slow movement, the Japanese car manufacturer, Toyota Motors has decided to sharpen its focus on Indian car market. Toyota has finally turned into energetic mode after a snail’s pace of 10 years, where new models were introduced slowly and the portfolio included a handful of cars.
But now Toyota is buzzing with life with recently launched Toyota Corolla Altis, the company also plans to introduce small car to India. Last year the company forayed into the used car market with Toyota ‘You Trust’ outlets in all metro cities.
The hunch in Indian market has hardly affected Toyota brand and 2015, the company plans to gain 10 percent market share. Toyota has introduced vehicles only for premium segment in India-MUV Innova, Corolla, Camry and Land Cruiser Prado. Innova and Corolla have been very successful models, while others have made a mark in the niche market. The CNG variants of the existing models are expected to roll out this year. Toyota also plans to introduce new cars in other segments, which include a petrol sedan that will compete against Ford Fiesta and Maruti Suzuki SX4 and a hatchback to compete against Chevrolet Spark, Hyundai Getz and Maruti Suzuki Swift.
But now Toyota is buzzing with life with recently launched Toyota Corolla Altis, the company also plans to introduce small car to India. Last year the company forayed into the used car market with Toyota ‘You Trust’ outlets in all metro cities.
The hunch in Indian market has hardly affected Toyota brand and 2015, the company plans to gain 10 percent market share. Toyota has introduced vehicles only for premium segment in India-MUV Innova, Corolla, Camry and Land Cruiser Prado. Innova and Corolla have been very successful models, while others have made a mark in the niche market. The CNG variants of the existing models are expected to roll out this year. Toyota also plans to introduce new cars in other segments, which include a petrol sedan that will compete against Ford Fiesta and Maruti Suzuki SX4 and a hatchback to compete against Chevrolet Spark, Hyundai Getz and Maruti Suzuki Swift.
Corolla Altis
The first leg of the new plans for Indian market has been realized with the launch of Corolla Altis (August 2008). The Corolla Altis that is priced between Rs 10.83 lakh to Rs 12.86 lakh will give a tight competition to Honda Civic. So far it has pinned high hopes on the new launch Corolla Altis and has set a target of 20,000 cars by 2009. Altis is a premium vehicle takes over from the existing Corolla.
Small car
The small car is an ambitious plan set to take off in 2010 and the construction for the new plant has already started, near its existing plant in Bangalore. The small car is expected to further strengthen Toyota’s presence in India. The hatchback would also make Toyota engage actively in Indian car market, where it has been a reluctant player so far.
A statement by Managing Officer, Toyota Motor Corporation, Japan, and Yasuhiko Yokoi said that the company had understood the Indian car market over the last ten year. The market is tough and is a major competitive arena for global players. Toyota wants to bring the global quality standards to Indian market also, for which it has embarked on teaching Indian suppliers the ‘Toyota Production System’.
He further added that though the growth rate has fallen to 7 percent in 2008 from 11 percent last fiscal, the company was optimistic about Indian car market. Especially the launch of hatchback in 2010 is expected to provide handsome returns for large investments made in India. The company plans to increase the small car production capacity to 2 lakh units per year, from the current estimated capacity of 1 lakh units.
A statement by Managing Officer, Toyota Motor Corporation, Japan, and Yasuhiko Yokoi said that the company had understood the Indian car market over the last ten year. The market is tough and is a major competitive arena for global players. Toyota wants to bring the global quality standards to Indian market also, for which it has embarked on teaching Indian suppliers the ‘Toyota Production System’.
He further added that though the growth rate has fallen to 7 percent in 2008 from 11 percent last fiscal, the company was optimistic about Indian car market. Especially the launch of hatchback in 2010 is expected to provide handsome returns for large investments made in India. The company plans to increase the small car production capacity to 2 lakh units per year, from the current estimated capacity of 1 lakh units.
Finance wing
Not satisfied with its portfolio. Toyota wants to bring to India in its own finance wing- Toyota Financial Services (TFS). The finance wing is only a part of the broader marketing initiatives to be taken up by the Company. According to company estimates, 70 percent of all Toyota cars are financed by banks. The leading lending institutions for Toyota cars are ICICI, HDFC, Citibank followed by other financial institutions.
The Indian subsidiary of the Toyota Motor Corporation (TMC) is working on creating a network of its outlets and infrastructure required to support it. Once the Indian arm of Toyota receives the green signal from TMC, the financial network is likely to become operational in most cities in India. The financial wing will work to realize Toyota 2015 target.
The Indian subsidiary of the Toyota Motor Corporation (TMC) is working on creating a network of its outlets and infrastructure required to support it. Once the Indian arm of Toyota receives the green signal from TMC, the financial network is likely to become operational in most cities in India. The financial wing will work to realize Toyota 2015 target.
Indian Major
Despite its few models, Toyota has been a major player in Indian market through its popular vehicles like Qualis, Innova, Corolla and others. The company has managed to make inroads into Indian hinterland with its tough vehicle. Achieving the 2015 target will not be a major problem unless the company plans to roll back its initiatives. Indian car market is encouraging and highly competitive for major world players. However, infrastructure problems could be the only impediments for which the company has to chart its own course.
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