Bengaluru: Toyota Kirloskar Motors (TKM) expects double digit sales growth for the Indian passenger car segment in the current financial year (2024-25), primarily on the back of the continued popularity of sports utility vehicles (SUVs), the company’s country head Vikram Gulati told DH.
However, Gulati remained non-committal on plans for electric vehicles, a segment where TKM has no presence in India, instead saying the company is looking at all options to meet local conditions and various needs of customers.
“We are quite confident that the Indian automobile market will continue to register double digit growth in 2024-25 and we hope to grow with the industry,” said Gulati, who is the executive vice president, corporate affairs and governance, at TKM.
In the fiscal year ended March 31, TKM sold 2,63,512 units, a 48 per cent year-on-year growth, and became the fourth largest carmaker in terms of sales, after Maruti Suzuki, Hyundai and Tata Motors.
“In the month of April 2024 (first month of 2024-25) we recorded a growth of 32% over the same period last year. We believe that this stable performance underlines a strong foundation for another positive year,” Gulati said.
Gulati’s forecast of a double-digit growth for the Indian automotive sector is at odds with executives at rival companies, including at Maruti Suzuki, the market leader with a 41.7 per cent market share.
Executives in other companies largely believe that the sector may grow by high-single digits, due to higher base from 2023-24, and a temporary slowdown in purchasing decisions due to the general elections.
As per data by Society of Indian Automobile Manufacturers (SIAM), the sector grew by 12.5 per cent in the last fiscal year, selling 2.38 million units.
On EVs, one of the fastest growing verticals in the sector, Gulati said that Toyota remains strongly committed to achieve carbon neutrality by 2050.
“We believe there is no single technological solution and for achieving carbon neutrality at the earliest, we must consider all technologies that best meet local conditions, energy mix and the diverse mobility needs of consumers,” he said, adding that the company is following a technology agnostic pathway.
TKM’s market share in 2023-24 was 5.8 per cent, up from 4.4 per cent the year before. Gulati said the company has seen growth across its model range, including in cars which are sold under the Toyota as well as Maruti Suzuki badge, as part of a global partnership between the two Japanese parent companies.
These include the Toyota Glanza (Maruti Suzuki Baleno) and Urban Cruiser Hyryder (Grand Vitara). The company also recently launched Taisor, a rebadged Maruti Suzuki Fronx.
“The tie-up has helped to provide customers wider choices of products to meet their evolving needs and expectations,” Gulati said.
Gulati said that the company is offering CNG option in more of its models, and that TKM is expected to keep pace with the rest of the industry in terms of CNG car sales, for the year.
SUVs and multi-utility vehicles have been some of TKM’s best selling cars in India, including the Fortuner and the Innova. Gulati expects the demand for SUVs to continue to grow due to the levels of disposable income among consumers.
“There exists a considerable potential for the (SUV and MUV) segment, particularly among the youth… With more available model options this segment will definitely grow further,” he said.