Toyota aims to double its profit before year 2015

Thursday 10 March 2011, 00:00 AM by Vikas Yogi

Leading car maker Toyota Motor Corp. will roll-out as many as 10 new hybrid car models as a part of its long-term strategy under which it is aiming to register a double-fold increase in its profits before year 2015. Moreover, the company will be relying more on emerging markets like India and China for sales.

Toyota’s president Akio Toyoda stated on Wednesday that the company would also be eliminating one layer of management, while giving each geographic region a bigger role to bring the automaker closer to its customers. He added, "From now, we aim to build a strong base for generating profits....so that even under tough conditions with the dollar averaging 85 yen and sales of 7.5 million units, we can book an operating margin of 5 percent and an operating profit of about 1 trillion yen."

Further elaborating on Toyota future strategy, Mr. Toyoda said, "This means that even if we are hit with a major economic downturn again and sales fall about 20 percent, we will still be able to post profits. This is the bottom line of our sustainable growth plan."

Meanwhile in India, the company has postponed the launch of its much awaited compact hatchback Etios Liva till June form earlier schedule of April 2011. The move has been taken in a bid to clear the existing high order backlog of Etios sedan.