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.
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: