At a time when most automakers are grappling with sluggish demand, Toyota Kirloskar Motor (TKM) is achieving impressive double-digit sales growth each month. This success is driven by its strong SUV portfolio and the strategic partnership between its parent company, Toyota Motor Corporation, and Suzuki Motor Corporation.
The Japanese automaker is set to surpass the 3 lakh annual sales milestone in the financial year 2025 and expects this robust growth to continue into the next fiscal year. Unlike other carmakers focusing heavily on electrification, TKM has adopted a unique strategy by offering a broader range of green powertrain options, emphasizing its ultimate goal of reducing carbon emissions.
In an interaction with TNIE’s Arshad Khan, Vikram Gulati - Country Head of TKM and Sabari Manohar - Vice President of Sales at TKM discuss Toyota’s growth in India, their approach towards different powertrains and investments by the company. Edited excerpts:
Competition is launching one EV after another. When can we see an EV from Toyota?
Toyota’s journey with electric vehicles (EVs) started as early as 1997. Next year, we are poised to sell approximately 1.5 million EVs globally, reflecting the progress and leadership we’ve established in this domain. EV technology itself is not a challenge for us, given our experience with selling over 29 million electrified vehicles worldwide, most of which are hybrids. Our approach is not tied to a specific technology but rather to meeting societal needs. We aim to provide practical and greener solutions that align with societal demands, national goals, and the aspirations of consumers. For us, all technologies are open.
What do you think will be the mix between different powertrains in the next five years or so?
What’s happening globally is very difficult to predict. People were talking about the death of ICE and all but all the numbers are being rewritten. Predicting the future of automotive technology is challenging due to unforeseen factors such as COVID-19 disruptions, supply chain issues, and evolving geopolitical and geoeconomic scenarios. However, we believe that the future will rely on multiple technologies coexisting to serve diverse needs. For instance, the government of India is pushing for biofuels like ethanol and compressed biogas (CBG), which are already showing significant environmental and economic benefits.
Toyota’s market share in India has grown significantly in the last few years. What are your future aspirations in terms of market position?
While we have seen our market share grow from under 5% in 2019 to nearly 8% now, we don’t chase specific numbers. Our philosophy is to focus on providing value through reliable products and exceptional customer service, which naturally translates into growth. We’ve been expanding our reach and establishing closer connections with customers through over 1,100 customer touchpoints.
Do you anticipate continued double-digit growth for Toyota in India in the coming years?
We remain confident about our growth prospects. The momentum generated by our investments, robust product lineup, and customer-centric approach positions us well for the future. While precise growth figures are difficult to predict, the foundation we’ve built over the last few years ensures a positive trajectory.
Even with current challenges, we expect 2025 to be a strong year for Toyota in India.
What updates can you share about Toyota’s investments in India, including the Maharashtra project?
Toyota has made significant investments in India, including R4,800 crore announced in May 2022 and another R3,300 crore in November 2023 for a third plant in Karnataka. The Maharashtra project is progressing well, with a phased rollout planned for 2028-29.