In keeping with an ongoing downward trend in the automotive industry, Toyota Kirloskar Motor has announced 7 percent sales decline for May 2019. TKM sales stood at 12,138 units in the domestic market down from 13,113 units sold in May 2018.
For the month, Toyota exported 928 units of the Etios series, up from 827 units of the Etios exported in May 2018. Total company sales stood at 13,066 units, down from 13,940 units sold in May 2018 at 6 percent sales decline. So while May 2018 sales growth was reported at 20 percent, May 2019 sales hasn’t been comparable. Toyota India reported 22 percent sales decline in April 2019.
Toyota is embarking on a new approach for India, basis its understanding with Suzuki global. The company will launch Toyota Glanza, a rebadged Baleno on June 6, 2019. For May 2019, Maruti Suzuki has listed 2,302 units of the Glanza it has sold to Toyota as part of its own sales count for the month listed under ‘sales to other OEM’. Over 300 were sold in April 2019, taking the total no of Glanza dispatch to over 2,600 units.
TKM expects sales to brighten in the months to come, and looks forward to its premium hatchback segment entry next week. Glanza pre-bookings are ongoing. Launch is on 6th June. N. Raja, Deputy Managing Director, Toyota Kirloskar Motor said, “The customer demand had witnessed a continued slowdown before the election results. Customers have been cautiously spending which has led to sluggishness in the domestic auto sales. Added factors like liquidity tightening, high insurance costs, increase in fuel costs have also weakened the retails.”
Toyota India completes 20 years of production in India in 2019, and is making bold strides. It’s Suzuki partnership will see Toyota launch a rebadged Ciaz, Brezza, and Ertiga in due course of time. While future plans come into play, Toyota India would be gauging Glanza response closely to gain insight into how the approach is being received.
As India inches closer to BS6 mandate, a new Toyota Corolla Altis for India may not see the light of day, owing to limited D-segment sedan sales. The Indian market has in recent years been tipped in favour of SUVs. Such a move would mean Maruti Suzuki is required to reconsider its plan to introduce a rebadged version of the sedan.