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Toyota has no plans to buy 100 per cent stake in Indian subsidiary

2016 Toyota Fortuner Price

Toyota, the Japanese automakers have confirmed that they have no plans to buy out partners Kirloskar Group that owns 11 per cent in the joint venture.

Toyota entered India in October 1997 as a part of the joint venture with Kirloskar Group that owns 11%. Though Toyota has now clocked net profits of INR 529 crores in FY15, the company has stated that it has no plans of buying out the stake owned by Kirloskar Group and nor is Kirloskar Group keen to pull out of the partnership as both parties are happy with the current arrangement.

Toyota Kirloskar Motor, Managing Director Naomi Ishii, took over in January 2014 and is instrumental in the increase in net profits after the company was in the red for the past two years. Ishii made this announcement stating that Kirloskar Group will be continuing with the present arrangement while Company vice-chairman & whole-time director Shekar Viswanathan has also confirmed that both Toyota and Kirloskar Group will be going ahead with the joint venture.

2016 Toyota Innova spied

Two new products from Toyota – new gen Fortuner and Innova are set for India launch in 2016. These will come with more powerful and fuel efficient diesel engines.

As of now, the company, will be concentrating on retaining its 1 million customers in India and has no aggressive plans to increase either market share or sales figures. India ranks among one of the eight focus markets of the company wherein around INR 8,000 crores has been invested since 1997. Toyota however does not plan on bringing in the Lexus into domestic markets as uncertainties prevail as to whether the country is ready for a multi-million-dollar car.

Together, Toyota Kirloskar has been the winner of several awards in Indian auto industry. The latest being Best Energy Kaizen Award 2014-15. This award was conferred on to TKM by Confederation of Indian Industry (CII). Read more on the same in the news release below:

News Release

About the author

Pearl Daniels

Pearl Daniels

Former freelance writer, Pearl Daniels is in the auto industry since 2011, having established herself as a widely read staff writer since 2013. Her keen eye for industry news, daily need to break down latest events, and quest to not miss a single launch detail, gives you the most refreshing morning news on weekdays.

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