- Toyota posted a 23-basis point jump bringing its overall market share to 4.86% on the Indian market in H1FY2020 as compared to 4.63% in the same time last year.
- Competitors such as Tata Motors and Honda Cars India posted a decline of 1.9% and 0.9% in market share
- Glanza’s increased contribution to total sales is the main reason behind the growth in market share of Toyota Kirloskar Motors.
Japanese carmaker Toyota Kirloskar Motors’ Indian subsidiary, according to industry reports, has for the first time overtaken Tata Motors and Honda Cars India to become India’s fourth-largest car manufacturer in terms of market share.
Toyota’s Glanza Stole The Show:
Glanza‘s increased contribution to total sales is the main reason behind the growth in market share of Toyota Kirloskar Motors. The re-badged version of Baleno, released in June this year, averages 2,000 units of sales each month.
In addition, the carmaker was able to maintain average vehicle sales such as Innova and Fortuner amid the industry-wide downturn.
Toyota posted a 23-basis point jump bringing its overall market share to 4.86% on the Indian market in H1FY2020 as compared to 4.63% in the same time last year. At the same time, due to the prolonged recession, the market shares of Tata and Honda have taken on a severe blow. Market share of Tata Motors dropped from 6.21% to 4.75% in the same period, while the market share of Honda Cars India fell from 5.49% in the same period last year to 4.60%.
Commenting on how the company was able to beat the slowdown, N Raja, Deputy Managing Director, Toyota Kirloskar Motors, said,
We have followed the fundamentals in these tough times faced by the industry by taking care of the needs of our customers and seeking to meet their standards at all points of sales and service.”
On Glanza’s results, N Raja, Deputy Managing Director Toyota Kirloskar Motors, said, “We’ve concentrated on the customers-for-life approach targeting millennials even for our latest offering (Glanza). This strategy helps us get our product experienced by first-time Toyota buyers and thus allows us to expand our customer base.”
“Continued releases, i.e. Ciaz, Vitara Brezza etc., would help Toyota add more to the volumes in the coming years,” said Gaurav Vangaal, country manager, Market Forecasting, IHS Markit.
Experts from the industry agree that Glanza was able to crack the compact hatchback segment which Toyota Liva struggled to do. It has turned into a win-win situation for the company to sell Glanza to personal buyers and Liva to fleet operators. In addition, Glanza is one of the first models to be launched under the Toyota-Suzuki partnership and has clearly strengthened and contributed to the position of the company in the compact hatchback market. The Suzuki partnership has already begun to yield positive results for Toyota.