Toyota India makes almost Rs. 1,000 crore in FY18!

Toyota Kirloskar Motors has posted a profit of Rs. 965 crore for the fiscal ended March 2018. This is the fourth year in succession that the company has posted a profit in excess of Rs. 500 crore.

A look at the figures indicates that the company is aiming to maximise its profits instead of increasing its market share. According to a media report, Toyota's profit for FY 2016-17 stood at Rs. 557 crore, while its annual sales and revenues for the same period stood at 1,43,364 units and Rs. 21,151.59 crore respectively. In FY 2017-18, the company's annual sales dropped by almost 2% to 1,40,645 units, while revenues fell by 10% to Rs. 18,998.09 crore. However, favourable currency movement, increased localisation and sustained cost cutting saw its profit rise by 73%. This is the highest profit that the company has ever recorded. It is also reported that Toyota has posted this profit with just 50% capacity utilisation.

Sustained demand for the Fortuner and Innova Crysta has also been responsible for helping the profits rise, while most of the sales in the year came from fleet vehicles including the Innova Crysta and Etios.

From FY 2012-13 to FY 2017-18, Toyota's market share in India has declined from 6.21% to 4.28%. But, with the rise in profit, the company decided to launch the Yaris sedan earlier this year. In the first seven months of FY 2018-19, the company sold 92,169 cars and grew at a rate of 15% - about two times faster than the market. 

Source: ET Auto