In a remarkable turn of events, Toyota Kirloskar Motor (TKM) is gearing up to achieve optimal capacity utilization at its manufacturing plants by the end of 2024, and it’s all thanks to an unprecedented surge in demand for its models.
Ever since its collaboration with Suzuki Motor Co. and the introduction of new models in 2020, such as Hycross and Innova Crysta, the automaker has witnessed an incredible boost in demand, driving its production to new heights.
Vikram Gulati, the country head and executive vice president of Toyota Kirloskar Motor Pvt Ltd (TKMPL), stated that the company is on track to achieve another year of record production and sales in 2023, thanks to the robust demand for its recently launched vehicles and the buoyant passenger vehicle market.
During FY23, TKM dispatched an impressive 174,015 units to dealers, marking a phenomenal 41 percent increase over the previous year. Now, setting their sights higher, the company aims to dispatch between 220,000 to 230,000 units in the current fiscal year, projecting a second consecutive year of double-digit growth. A substantial portion of this surge is anticipated to be fueled by the success of the Hyryder, a new compact SUV co-developed with Maruti Suzuki.
However, despite its soaring popularity, the Hyryder has been operating under capacity constraints, selling only 16,681 units in the first five months of 2023, with an average monthly sale of 3,336 units. Comparatively, Maruti Suzuki’s Grand Vitara, the sibling model, has managed an impressive average monthly sale of 10,000 units.
Addressing this issue, Gulati emphasized that the initial step is to fully utilize the existing capacities, followed by enhancing efficiency across all units. Only then will the company contemplate the next strategic move, which may include setting up new production facilities.
The current plant, responsible for manufacturing the Hyryder, Camry, and Hilux models, boasts a production capacity of 210,000 units per annum. To maximize output, Gulati revealed that they are already working on optimizing and enhancing efficiency at this plant.
While these developments are undoubtedly promising, there’s still room for growth, as customers often experience waiting periods ranging from six to ten months when selecting Toyota models, depending on the variant.
In conclusion, Toyota Kirloskar Motor’s journey towards maximum production capacity is driven by its unwavering commitment to innovation and customer satisfaction, ensuring a thrilling ride for both the company and its ever-growing customer base. As the demand for their exceptional models continues to rise, TKM’s drive to meet these expectations sets the stage for an exciting future in the Indian automotive landscape.
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