Toyota May 2020 sales in India have registered a decline of 86.5% – due to the recent lockdown due to pandemic
In the backdrop of an ongoing lockdown that stretched from March to May end, companies have only recently begun limping back to business. This is being done in strict adherence to government and local authority directives that outline which business entities can reopen for business in which zones.
Opening a business at this time requires operations to follow safety SoPs that are the need of the hour. Toyota Kirloskar Motor (TKM) has reported 1,639 units sold through May 2020. Majority of sales have come for Innova Crysta, Glanza and Fortuner SUV.
This pales in comparison with domestic sales in May 2019, which was reported at 12,138 units. Etios exports a year earlier stood at 928 units. Toyota resumed production at its Bidadi plant since May 26, 2020. For now, the company is focused on clearing pending orders received since lockdown was announced.
Through May 2020, the auto manufacturer was able to gradually begin ops at Toyota dealerships in parts of the country. By mid-May, about 60 percent of Toyota dealerships were operational but not in key metropolitan markets. This is because, metro markets like Bombay and Delhi have reported a growing number of Covid-19 cases. As such, as per zone allocation, major business areas haven’t yet been permitted to operate. With lockdown relaxation, TKM has been able to service customers in other markets as well.
Naveen Soni, Sr. Vice President, Sales & Service, TKM said, “We are thankful to the Govt. as well as to our supplier and dealer partners who have enabled us resume production last month. We are conscious of the dealer business conditions in various parts of the country and we have been prioritizing production at our end as per dealer requirements, both in terms of quantity as well as the grades that they require.”
No doubt, the market is slow at such a time, especially when it comes to a big ticket purchase like buying a car. In the face of lower demand, Toyota has been able to wholesale only 20 percent of what it would have reported in a market prior to the pandemic. Retail sales (sale from dealer to customer) is higher when compared to wholesales (TKM sales to dealers). This has helped reduce month closing inventory level at dealerships.
At this time, business queries are being directed online. Sini adds, “We are thankful to our customers as well who trust us and our products as well as have been patient with us.”
Operation shave now been resumed in more than 300 Toyota outlets, with sales operations in close to 220 outlets, and service operations in more than 230 outlets. Deliveries are being made wherever possible.