Tuesday, June 09, 2009

Toyota Not Highly Optimistic about Car Sales in Indian Market in 2009

Toyota Motor Corporation expects flat sales in Indian market in 2009. The Japanese automaker, which is now operating business in India under a joint venture with Kirloskar Group, has not started selling small car in the cost-effective Indian car market. In fact, the Toyota Kirloskar is planning to launch its first small car in the domestic market at the end of the year. Small car has become the most profitable line of business for the automakers in the country.

Most of the rival companies including GM, Suzuki and Hyundai already started selling small car. Last fiscal year, small cars accounted for 73% of the 1.22 million car sales in India. Having realized the potential of the small car line up, many car makers came up with small car models in India. Domestic car makers like Maruti, Tata have also made the small car market more competitive.

I think, Toyota should have focused on the small car segment much before. No doubt, the company should now bring out a small car for Indian market as soon as possible because this is the easiest way to grab a big chunk of market share within a very short time in Indian car market.

Related article:

The Wall Street Journal