The Light Is Green: India auto industry update (Part 9): Toyota in India

As a provider of dealer management systems to automobile dealerships in several emerging markets, we closely follow what happens in the auto industry in key regions around the world. I thought it might be interesting to share some of that information.

In the world's major markets, auto sales are slowing at the same time that competition increases, so global auto manufacturers are setting their sights on big emerging markets like the BRIC countries: China, Russia, Brazil and India.

This series briefly discusses the promising future of the automotive industry in India. We've already looked at what GM, VW, Honda, Ford, Renault-Nissan, Hyundai, reigning king Maruti Suzuki, and now we'll look at world #1...

Toyota in India

Toyota is present in India since 1997 through a joint venture called Toyota Kirloskar Motor Private Limited, in which Toyota Motor owns 89% and local Kirloskar Group of India the remaining 11%.

Toyota moving forward Today Toyota has a four percent market share in India.

Toyota Kirloskar has a plant near Bangalore that can produce 45,000 units annually, and that is currently running at full capacity. The Corolla and Innova minivan are made there, for local consumption.

Recent news reports have talked about Toyota's plans for a second plant, near their current one, to be built for some $400 million, but Toyota have replied that they have no concrete plans to do so.

Toyota offers the following models in India:

Camry
Corolla
Innova minivan
Land Cruiser Prado

Toyota's plans for a compact car in India

Small cars account for over 70 percent of the local car market, where Suzuki-controlled Maruti Udyog reign supreme with over 50% of the market.

But Toyota has not yet decided, or at least made public, their plan for a compact car in India. Recent reports in the news talk about a supposed small car project, saying it is central to Toyota's goal of reaching a ten percent share of the local auto market by 2010.

For some time there were reports that Toyota would build a new plant with their subsidiary Daihatsu this year, to produce 100,000 compact cars annually, but that never happened.

Toyota has taken an interesting step that could be seen as a prequel to expansion into increased production in India.

Toyota recently opened the Toyota Technical Training Institute (TTTI), a technical training school for middle school graduates, in Bangalore.

This is a vocational training school with a three year curriculum that offers academic classes on engineering and practical training at Toyota's plant. The training focuses on painting, welding, automobile assembly, and mechatronics.

This is Toyota's first such school outside Japan.

Other stuff

Toyota and Isuzu Motors (5.9 percent owned by Toyota) have just announced an alliance in small diesel engines, and will start making diesel engines for the European market starting in 2012. Development and production will be mainly carried out by Isuzu.

Toyota Prado Toyota Camry