Maruti Suzuki India Limited’s (MSIL) association with Toyota India is paying rich dividends, as the partnership has accounted for more than 61 percent as of November 2020 sales figures. However, these figures may not shed light on Toyota’s own cars made in India, but it could lead to a drastic change for the Toyota Kirloskar Motors’ (TKM) car manufacturing future in the country.
It is not the first time that auto manufacturers are faced with these dire circumstances. Many years ago as well, the brand had tabled the state of auto-manufacturers while dealing with policies that aren’t defined clearly and tax rises, reported Rushlane.
The repeated pile-up of taxes on the varied range of cars that Toyota India manufactures translates into costlier cars, especially ones that are far more competent. Needless to spell out, but this is enough to discourage customers and force them to look away.
Toyota India hasn’t launched a new car they built in recent years but have been selling rebadged cars made by Maruti Suzuki and the formula seems to be working wonders for them. The Japanese auto giants known for their capable vehicles, such as the Innova and Fortuner, are now selling more rebadged cars than from their own stable.
Wholesale figures show a lead for the Urban Cruiser, which essentially is a Maruti Suzuki Vitara Brezza with couple of cosmetic changes are in line with Toyota’s design norms. The recently launched Urban Cruiser sales show a sale of 2,832 units which accounts for 33.29 percent of TKMs total domestic sales.
The Glanza comes second with 2,428 units sold so far. Its sales are up by 4.97 percent as 2,313 units were sold in the previous year. The rebadged Maruti Suzuki Baleno accounts for close to 28.54 percent of the company sales in November this year.
With their rebadged cars notching good sales, their own bestseller – the Toyota Innova – saw a dip in sales as 2,912 units were sold as compared to 3,414 units reporting a 35.79 percent decline. It has affected the Fortuner sales too, as its figures fell by more than a third. The decline in sales is reported as 38.29 percent down to 656 units from 1,063 units sold a year earlier.
With the Liva, Etios’ sales being already stopped, Toyota Camry sales dropped to 32 units from 99 and the Vellfire sales are at 23 units. However, its 2018 launched sedan, the Toyota Yaris’ sales showed a triple-digit gain as 345 units were sold as compared to 107.
Their flagship cars are no longer sold, and Toyota’s market stands similar to the previous year’s mark. The market share it commands is because of its association with Suzuki, else TKMs sales have been starkly low. As of November 2020, Maruti Suzuki cars in the Toyota makeup accounted for more than 60 percent sales.
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During the festive season sale, which usually bodes well for the auto industry, TKMs sales declined by almost a third on a month-month basis. In October 2020, they reported a sale of 12,373 units but sales of all the TKM cars dropped in November 2020.
Moving forward, as India is prepping to embrace more affordable and hybrid vehicles, Toyota will play a crucial role taking a cue from its global experience during this seismic change.
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