Japanese auto major Toyota is looking to increase its export volumes from India in a bid to partially offset the losses accrued due to depreciation in the value of the Indian National Rupee. In the past four months, the Indian division of the company, Toyota Kirloskar Motor (TKM), lost Rs. 60 crores due to this. In April 2012, it started exporting from India for the first time by shipping the Etios twins to South Africa.
Shekar Viswanathan, Deputy Managing Director (Commercial), Toyota Kirloskar Motor, said, "The rupee fall is hitting us badly. To counter this, we are planning to increase our exports from the country. We will look for new markets." It is eyeing export volumes of 20,000 vehicles of the Etios and Etios Liva on an annual basis.
Without naming any new markets that these cars may be heading to, Viswanathan commented, "These are all right-hand drive cars. We will look for such markets. We will have to check if these cars are suitable for selling in other markets as well." By early 2013, TKM will bolster the yearly production capacity of the Etios series from the existing 1.2 lac units to 2.1 lac cars.
Responding to a query about the effects of the depreciation of the Indian Rupee, he stated, "For a fall of every rupee against dollar, we lose about Rs. 90 crores on a yearly basis. In the last four months, we have lost an average of about Rs. 15 crores every month, totalling to about Rs. 60 crores."
However, he said that an immediate hike in the price of Toyota cars in India is not on the cards. At present, the manufacturer imports various crucial parts, engines and gearboxes for a host of models in the domestic market.
Since March 2012, the value of the Indian Rupee has gone down by more than 13 per cent owing to a variety of factors, including worsening global risk sentiment and negative market conditions. Last week, its value reached Rs. 56.38 against the US Dollar, the all-time low figure. On May 25 2012, it strengthened by 27 paise, its second consecutive rise, to end the day at Rs. 55.37. This rise came into effect after the central back of the country, the Reserve Bank of India (RBI), stepped in as the Rupee went below 56-level in early trading.
