Toyota Kirloskar Motor (TKM) has experienced significant growth in sales in the first half of this year, with a 36% increase compared to the same period last year. During the first quarter alone, the company saw a 33% growth on a year-on-year basis. To meet the strong demand, TKM has ramped up production by 32% at its Bidadi plant, resulting in an increase of up to 33,000 vehicles each year.
Last year, TKM sold a total of 174,000 vehicles, marking a growth of 41% compared to the previous year and making it the company’s best year so far. The positive momentum has carried over into this year, with the first six months showing promising results. Vikram Gulati, Country Head and Executive Vice-President of Corporate Affairs and Governance at TKM, expressed confidence that this year’s numbers will surpass last year’s, potentially setting another record for the company.
To address supply chain issues and reduce waiting periods for customers, TKM has expanded its capacity and implemented three shifts at its plant in Karnataka since May. The introduction of a third shift has helped ramp up production of popular models such as the Innova, Hycross, and Crysta. TKM is continually working to improve internal efficiency, address supply chain challenges, and meet customer demand more efficiently.
Another aspect contributing to TKM’s success is the growing demand for hybrid vehicles. Consumers have been positively responsive to hybrid options, as they are less price-sensitive compared to traditional internal combustion engine (ICE) vehicles. However, Gulati emphasized the need for broader electrification and suggested that higher taxes on hybrids compared to ICE vehicles do not make logical sense for consumers.
In conclusion, TKM has experienced significant growth in sales and production, resulting in expanded capacity and reduced waiting periods. The company’s focus on hybrid vehicles has also played a role in its success. TKM aims to maintain its momentum and potentially achieve record-setting sales figures this year.
