Tuesday, March 05, 2013
By Anil Jangid
Toyota India domestic sales dip by 23% in February 2013
Toyota Kirloskar India recently witnessed 23% plunge in the car sales. Where at one side, previous year sales in the month of February accounted for 12,756 units, on another side, during current’s year February month, only 16, 659 units were being sold. Again, the Toyota Etios Liva hatchback and Toyota Etios sedan remained the best selling Toyota cars in India followed by Toyota Fortuner SUV. A glance on export indicates towards the total sales up to 13,979 units. However, the drop in the sales is not due to competition related reasons. TKM Deputy MD and COO, Sandeep Singh had reportedly stated that the market continues to stay sluggish and it is believed that additional levies on utility vehicle and SUV have led to the sharp decline in the sales. It is apparent that Toyota Kirloskar would need to look for the ways to prevent further sales decline, otherwise the repercussions of the additional levies could be more detrimental in long run.
Nevertheless, there is something positive piece of news as well regarding the Toyota Kirloskar Auto Parts. Recently, the company revealed that they are going to inaugurate a new Gasoline Engine and Transmission Plant in the Bangalore city. The opening ceremony took place soon after the announcement, in Bidadi. There are no qualms that the new plant will create excellent job opportunities in direct and indirect manner, both. This new plant is also believed to enhance the quality of customer services in India. There are rumors doing rounds that an amount of 500 Cr have been allocated for this huge plant. As far as annual capacity is concerned then engine plant is expected to produce 1,08,000 units, while transmission plant is expected to produce 2,40,000 units.
Well, there is no doubt that additional levies will certainly make the situation worse because market is already reeling under the threat of depression. However, the growth prospectus of the company looks bright as this new plant is going to contribute a substantial amount of revenues for the company.