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Toyota Innova Crysta low sales results in 24% decline for company – Aug 2019

Toyota Kirloskar Motor has reported total sales of 11,544 units in August 2019. Sales decline is reported at 21 percent, down from 14,581 units sold in Aug ’18. Domestic sales stood at 10,701 units, down 24 percent from 14,100 units sold in August 2018. Exports for the month have grown 75.25 percent. Etios series exports is up at 843 units from 481 units in August of 2018.

The brand’s most recent launch is Toyota Glanza based on Maruti Suzuki Baleno as part of both manufacturers’ partnership. For August 2019, MSIL has reported Glanza sales at 2,333 units as sales to other OEM. Maruti manufactures Glanza, which is then sold by Toyota India.

Toyota dealers in India are offering discounts on all cars in its portfolio this September, to counter weak sales and poor demand which the company has been experiencing over past few months. These discounts, benefits and exchange bonuses extend to the Etios, Yaris, Corolla Altis, Innova Crysta and Fortuner and are upto Rs.1.95 lakhs.

Toyota India dealers have been left with piling stocks as the auto sales slowdown enters its 9th straight month. The auto makers are resorting to temporary halt in production, laying off workers, etc to counter these lower sales while discounts and exchange bonuses are being dished out to reduce piling stocks in dealer showrooms.

N. Raja, Deputy Managing Director, Toyota Kirloskar Motor said, “The consumer sentiment continues to be muted in the month of August, with customers deferring their purchase of vehicles. Severe floods across states has also hurt the demand in the industry. Unfavourable exchange rate is not helping our cost.

We are happy that despite the current slowdown in the industry which has resulted in slump in domestic sales, Glanza sales have shown a positive momentum. We have been successful in reaching out to our target buyers ‘First Time Toyota Buyers’, we have seen higher footfalls from them. The Union Finance Minister announcing measures recently to boost the auto sector with cheaper car loans, improving liquidity through credit expansion to public sector banks, deferring of one-time registration fees, higher depreciation for all vehicles and lifting ban on purchase of new vehicles in government departments is likely to spur some demand which is a much needed relief.

The latest FDI reforms which will boost local manufacturing, also comes as a positive move to propel growth in the industry in the long run. We hope that the festive cheer ushers in positive sentiments with better retail sales in the upcoming months.”

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