Toyota marked a 14% growth in sales in December 2020, in comparison to the same month the year before. The major contributing factor to this growth is the cooperation between Toyota and Maruti Suzuki. Under this tie-up, the two companies offered to share products and technology. As a result, Toyota was able to incorporate badge-engineered products like the Glanza and Urban Cruiser. In return, Toyota supplied Maruti Suzuki with technology to improve its sales in the international market. So both the companies stand to benefit from this Joint Venture. Let us take a look at the sales figures for Toyota in-depth to understand the impact of this tie-up with Maruti Suzuki.
Toyota – Sales report breakdown
In December 2020, Toyota sold 7,487 units in India. This was 14% more than what it sold in December 2019, where it sold 6,544 units. More than 52% of 6,544 units in December 2019 were Innova Crysta alone. This has been the brand’s highest-selling car in India for quite some time now. Within one year, however, the contribution of Innova Crysta to the total sales of Toyota has been reduced to a mere 37%. That is a decline of more than 15% within a year. Also, one thing to notice here is that the Innova Crysta has been refreshed during this time frame. So, it is not like the Innova has become old and boring.
Interestingly, the share of Maruti Suzuki-sourced Glanza was below 15%. The Maruti Suzuki-sourced Urban Cruiser was not launched yet. The only source of sales were Toyota products including Innova Crysta, Etios and Fortuner. On the other hand, the sales report for December 2020 shows that the Maruti-Suzuki sourced products accounted for more than 52% of Toyota’s total sales. This is where Toyota has evidently benefitted from joining hands with Maruti Suzuki.
Toyota – Future Plans
Toyota has recently launched its facelifted Fortuner with new Legender variants as well as a bunch of cosmetic and mechanical changes. However, it must be understood that, as popular as the Fortuner might be, its contribution to the total sales for Toyota is not significant. The only original Toyota product in India which contributes substantially to the sales is the Innova Crysta. However, it is also likely to face tough challenges from the likes of Mahindra Marazzo, Maruti Suzuki Ertiga and Maruti Suzuki NEXA XL6. If rumors are anything to go by, Kia is also planning to bring its MPV to India. This will directly compete with the Innova Crysta.
Currently, Toyota enjoys a mere 2.7% market share in our market. But considering the challenges that it will face in the coming times, it will be very interesting to see where Toyota’s market share stands at the end of this year.