Exports only saving grace this FY, says Toyota

During 2012-13, the company sold around 190,000 passenger cars, about 61% of its installed capacity

Toyota Kirloskar Motor, the Indian subsidiary of Japan’s Toyota Motor, does not see passenger car sales rebounding before the second half of next financial year. He also does not see sales rebounding any soon for the sector in general.

“We are hopeful of maintaining our last year’s production levels and sell as many cars as last year, mainly with the help of exports. This year, our domestic sales will be lower than last year’s but we are exporting more than last year,” said Vikram Kirloskar, vice-chairman.

In the financial year 2013, the company sold 190,000 passenger cars, 61 per cent of the installed capacity of 310,000 vehicles a year at the Bidadi plant near here. In the eight months ended November, Toyota Kirloskar sold 88,947 cars, down 18 per cent year-on-year.

“Compared to our installed capacity, we have reduced our production volume and shifts to adjust to the demand. We are now offering additional training to our workforce and conduct maintenance of the plant,” Kirloskar told Business Standard.

The Kirloskar group holds 11 per cent in the company, while Toyota has the rest. In October, the company tried production holidays for up to eight days a month and a single shift at both its plants in Bidadi to reduce the piling stocks at its dealerships.

Kirloskar said the company would launch models during the auto show in Delhi in January.

 “We don’t see any great improvement in the remaining months of this year frankly. I will be happy if the car industry performs same as last financial year or a few percentage points below last year. And, it’s lot more tougher for commercial vehicles side. The sentiment is low. Buyers are postponing purchases, which is hurting the industry. Let us see what policies will come next year after the elections,” he said. He added, “It is very hard to predict unless we see five-seven per cent growth in the economy. We want reduction in taxes. People only buying gold and jewellery. We need more growth in the economy at all levels.”