Toyota Kirloskar Motor (TKM) said it will continue to maintain a 30 per cent production cut till February. The company had begun cutting production since November to adjust supplies according to the demand.
“From November onwards, we have been cutting production to adjust supplies as per the demand. We expect to maintain the same schedule till February. After this, we except the production to be normal,” said Mr Hiroshi Nakagawa, Managing Director of TKM, at the sidelines of the launch of its new Innova priced between Rs 7.66 lakh and Rs 11.06 lakh (ex- showroom Delhi).
Sales target
The company said that it expects to sell 54,600 units this year which includes 44,000 units for Innova and over 10,000 units of Corolla Altis. Last calendar year, the company sold 52,000 units out of the total capacity of 60,000 units which it has at its Bangalore plant. Toyota has also lowered the sales target of its recently introduced sedan Corolla Altis.
In September when the model was launched, the company expected to sell 2,000 units every month. Though the company’s market share has grown to 42 per cent in the C segment, in terms of volume, sales till December stood half of what it expected.
“Overall the C segment sales have declined because of the economic conditions,” Mr Nakagawa said.
For the last entire year, Corolla sales stood at 7,400 units of which the new Altis model contributed to 4,500 units in the last three months.
Explaining the marketing strategy, the Deputy Managing Director, Mr Sandeep Singh, said they would tap their existing customers to sell their newer models.
“We expect 25 per cent of our customers to upgrade to an additional Toyota model.”
CNG variant
The company also plans to launch a CNG variant of Innova by the end of the month that will be priced Rs 90,000 higher than the existing model. On the small car, Mr Nakagawa said that it was under development to meet the launch target of 2010.
Meanwhile, Mr Vikram Kirloskar, Vice-Chairman, said the car was being developed by engineers from India, Thailand and Japan.
“From November onwards, we have been cutting production to adjust supplies as per the demand. We expect to maintain the same schedule till February. After this, we except the production to be normal,” said Mr Hiroshi Nakagawa, Managing Director of TKM, at the sidelines of the launch of its new Innova priced between Rs 7.66 lakh and Rs 11.06 lakh (ex- showroom Delhi).
Sales target
The company said that it expects to sell 54,600 units this year which includes 44,000 units for Innova and over 10,000 units of Corolla Altis. Last calendar year, the company sold 52,000 units out of the total capacity of 60,000 units which it has at its Bangalore plant. Toyota has also lowered the sales target of its recently introduced sedan Corolla Altis.
In September when the model was launched, the company expected to sell 2,000 units every month. Though the company’s market share has grown to 42 per cent in the C segment, in terms of volume, sales till December stood half of what it expected.
“Overall the C segment sales have declined because of the economic conditions,” Mr Nakagawa said.
For the last entire year, Corolla sales stood at 7,400 units of which the new Altis model contributed to 4,500 units in the last three months.
Explaining the marketing strategy, the Deputy Managing Director, Mr Sandeep Singh, said they would tap their existing customers to sell their newer models.
“We expect 25 per cent of our customers to upgrade to an additional Toyota model.”
CNG variant
The company also plans to launch a CNG variant of Innova by the end of the month that will be priced Rs 90,000 higher than the existing model. On the small car, Mr Nakagawa said that it was under development to meet the launch target of 2010.
Meanwhile, Mr Vikram Kirloskar, Vice-Chairman, said the car was being developed by engineers from India, Thailand and Japan.
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