Toyota Motor Corporation entered a joint venture with Kirloksar Group in 1997 and set up their first plant at the Suburb of Bangalore in Karnataka. The group is responsible for products like the Qualis, Innova and Fortuner which set a new benchmark in their respective segments. TMC holds 89% stakes in the joint venture while the Indian arm Kirloskar Group resides with 11%.
The company recently reported a net profit of INR 529-crore in FY15. This has come as welcome news for the mass car manufacturer considering the fact of its repetitive negative performance in the previous two years. While speculations were rife about Toyota overpowering their Indian counterparts by claiming a greater share of ownership, the same has been officially turned down by TMC as the former is content with their holding in the JV.
At an interaction with PTI, Toyota Kirloskar Motor managing director Naomi Ishii said “"We have a long-term relationship with Kirloskar and we are happy with the present arrangement. Neither we are planning to increase our stake to 100 per cent nor are they looking at exiting the partnership," Assuring the same fact was Shekar Viswanathan, Company vice chairman and whole-time director, by expressing that the Indian arm is confident about the arrangement and doesn’t wish to end or modify the partnership.
When Naomi Ishii was asked the reason of diminishing sales, he added, “We are not chasing any numbers here, though growing profitably is a call for me. But my priority is to ensure that Toyota retains 100 per cent of its customers,” Instead of chasing numbers, Toyota wants to concentrate its focus on retaining the existing vast customer base by offering them world class services and facilities.
Also, for all those wishing Toyota to bring their uber luxury brand Lexus to India, Ishii said “I would like to get the Lexus here. But I am not sure whether this market is grown enough to accept such a highly costly car. Also, with the import duty at 130 per cent, it just doesn’t look worth trying now,” Thus confirming it is still not anytime soon that Lexus will enter India.
Source: ET
