Toyota foresees 21% sales growth

A bullish Toyota Kirloskar Motor Ltd expects its passenger vehicle sales to grow 21.4 per cent this year to 49,200 units, even as it mulls an entry into the small car, multi-purpose vehicle (MPV) and the luxury sports utility vehicle (SUV) segments.

Besides its own vehicles, Toyota is mulling introducing small cars from sister concern, Daihatsu. In the luxury SUV segment, models such as the popular Land Cruiser Prado, Rav4 and Sequioa are being considered. It is also looking at bringing in new products in the MPV segment.

According to industry sources, Toyota is working on a new MPV which would be based on a new engine platform and may also replace the Qualis. The company is, however, yet to take a final decision on the models and timeframe for the entry into these segments, company sources said.

The subsidiary of the world's second biggest automaker Toyota Motor Corporation had forayed into the domestic market through a majority joint venture with the Kirloskar Group and launched its first model, the Qualis, in January 2000.

It also produces Corolla at its plant at Bidadi, outside Bangalore, while Camry is being imported and marketed in the count ry. Sources in the company said during 2004, MPV Qualis sales would be 36,000 units, while its premium sedan Corolla and luxury car Camry would sell 12,000 and 1,200 units, respectively.

Last year, it sold 40,507 units, which included 31,444 Qualis, 8,020 Corolla and 1,043 Camry vehicles.

Toyota Kirloskar had sold 38,123 units during April-February 2003-04, thereby achieving a 7 per cent marketshare in the domestic passenger vehicle industry, Asia's fourth largest. The company expects this to grow to 10 per cent by 2010 when it sells over about 100,000 units.

The continued growth in sales has enabled the company to break even on an operational level this fiscal on an investment of about Rs 900 crore and it is likely to post cash profits on a gross turnover of Rs 2,700 crore.

The sources said the Bidadi plant, which has an installed capacity of 45,000 vehicles, could be stretched with minor adjustments to produce the targeted sales volume of 49,200 units for 2004. To meet future demand, the company is finalising plans to expand its production capacity.

The launch of new vehicles is part of Toyota's strategy to increase its foothold in India, which it has identified as one of the two high-potential automobile markets in this century besides China.

The Japanese automaker has recently set up another joint venture company, Toyota Kirloskar Auto Parts to make manual transmission units to be used by its plants worldwide. The new entity would be operational after June 2004 and would have a capacity to make 168,000 units annually.