Buoyed by its Indian subsidiary’s encouraging financial performance last fiscal (over INR 500 cr), Toyota Motor Corporation is looking to accelerate its growth in the country by fresh investments for next gen Innova and Fortuner models.
According to a report from Economic Times, the car maker is planning to build 90,000 units of 2016 Toyota Innova and 30,000 units of new Fortuner in India annually. Globally, the next gen IMV platform models (Innova, Fortuner and Hilux) are estimated to contribute to sales of 1 million units and India is estimated to account for 12% of that 1 million.
The new Innova would be launched in the first half of 2016 while the new Fortuner will follow suit in festive season of 2016. Toyota Kirloskar Motor is hoping that the introduction of the two new products would help boost its capacity utilization which is currently lying around just 50%.
As far as the current sales performance goes, the expectation created by next gen models have put brakes on monthly volumes of Innova and Fortuner but the company has managed to keep pace with the industry (7% growth so far this fiscal), thanks to the 11% growth registered by Etios twins.
Once the upcoming engine plant in Bidadi goes on stream next year, Toyota is looking to gradually extend its localization level from 65-70% to over 85% for its prime models in the coming years.