 "Expect same high growth momentum to continue in 2025, says Toyota")
Amid slowing volume sales among India’s major automakers, Toyota Kirloskar Motor (TKM) has defied the trend with strong growth, driven by demand for hybrid vehicles and a reliable product line up.
The company expects this momentum to continue in 2025.
“The overall response to our cars has been fabulous. So, we foresee the same momentum in 2025 as well,” Sabari Manohar, vice-president, sales-service-used car business, TKM, told Business Standard.
During the first eight months of this financial year, TKM sold 219,054 units and achieved a growth of 39 per cent year-on-year (Y-o-Y).
In contrast, major players such as Maruti Suzuki, Hyundai, Tata Motors, and Kia saw decline in retail sales during the same period, according to the Federation of Automobile Dealers Associations (Fada).
“We are a brand which is able to cater to wide requirements of customers...We have been focusing on upskilling the dealer manpower, which also helps in contributing to the local economy,” Manohar said.
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He was talking after the launch of the new generation hybrid Camry sedan at a starting price of Rs 48 lakh (ex-showroom).
In the last few years, the sedan segment has recorded a decline in volume sales.
However, Manohar clarified that the downturn in the premium sedan market has not been as deep as the mass sedan market.
“The sedan market is getting replaced by A-SUV as well as B-SUV. This is primarily happening in the mass segment... In this segment, the tendency to select A-SUV or B-SUV is quite high in comparison due to the high stance,” he added.
“When it comes to the premium segment, we have been observing that some of the customers who own the first generation Camry, have repeatedly been buying every new generation Camry from us. In this niche segment, customers prefer to have sedans. It may not generate huge volume sales. But we will continue to cater to this requirement of core customers,” he said.
Toyota has sold 17,925 units of Camry in India since its launch in 2002. The company started selling the hybrid version of Camry from 2013.
“Five years ago, there were a huge number of sedans, but after that, there has been a major drift towards SUVs, especially B-SUVs. However, in the niche (premium) segment, we don't see such a drastic change,” Manohar said.
Vikram Gulati, country head and executive vice-president, corporate affairs and governance, TKM, said that India's aim for carbon neutrality could be achieved only with multiple green technologies such as strong hybrids, electric or biofuel.
“I think, at this early stage, all green technologies are needed. That is why we keep talking about multi-technology pathways. The world is also evolving in the same manner. The US market is seeing equal growth in strong hybrids, plug-in hybrids and electric cars. China is seeing a much faster growth of plug-in hybrid cars than others. This shows that the world is moving towards multi-technology pathways,” Gulati added.