Twin sales record by Toyota in India; Fortuner, Innova remain hot favourites

Toyota Kirloskar Motor (TKM) on Monday announced that it had registered a record performance in terms of wholesales in the just-ended financial year as well as in the month of March. Crediting factors like the continuing success of models like Fortuner and Innova Crysta, as well as what it terms as a ‘customer-oriented’ approach to doing business, the company says it will remain focused on strong offerings across car segments in India.

Toyota reported a growth of 48 per cent in FY2023-24 with wholesales peaking at 2.65 lakh units, up from 1.77 lakh units in the previous financial year. The time period being referred to here is between April and March. On similar lines, the company reported a month-on-month growth of 25 per cent in March with whoelesales of 27,180 units, up from 21,783 units.

In India,Toyota offers a number of products across vehicle segments - from Glanza and Rumion on one end of the price spectrum to the Innova Hycross, Hilux and Fortuner Legender on the other. “With a customer-oriented approach, we have always remained ahead in assessing and understanding the diverse needs of our varied customers and market trends, serving them the best with our wider range of quality products and services," said Sabari Manohar, Vice President, Sales-Service-Used Car Business, Toyota Kirloskar Motor. “We will continue to do so with an emphasis to meet the rising consumer demands across segments."

Factors that helped

Toyota is largely known for the robust build quality of its car models, in India and the world over. The company enjoys a strong brand loyalty, especially for models like Innova Crysta and Fortuner which have been unfazed by newer rivals in the market. And although the company has also benefited from an overall positive sentiment in the automotive market through the course of FY2023-24, Toyota has managed to maintain its strength in the MPV and large SUV segments while also creating some space in sub- ₹20 lakh price bracket through models like Urban Cruiser Hyryder, a mid-size SUV.

Challenges ahead

Sales for the overall Indian automotive market is expected to cool down after what has been a fertile playfield since Covid-19-related restrictions began to be lifted. Even the semiconductor shortage issue is now resolved, helping production get back to normal levels for most manufacturers. Wait times are coming down and a high pent-up demand has also been addressed.

Toyota, in particular, recently announced a price hike that comes into effect from April 1 on many of its models. The company blamed increasing input costs and operational expenditures for the decision. The price hike is likely to be around one per cent on select models.