Toyota Doubles India Market Share — In a remarkable feat in the Indian automobile market, Toyota Kirloskar Motor (TKM) has doubled its market share in the country to 5.5% over the past three years. This growth comes on the back of a strong demand for its robust SUV lineup, strategic partnerships, and a renewed focus on hybrid technology — positioning the brand as a key player in India’s evolving automotive landscape.
Rapid Growth Trajectory in India
Toyota’s sales performance in India over the last three years has been nothing short of transformative. In 2021, the company commanded a market share of just around 2.7%. By July 2024, this figure had more than doubled to 5.5%, marking a significant shift in consumer preference.
Executives at TKM credit this growth to a combination of factors — an expanded product range, increased localization, and an adaptive market strategy that has been tailored to suit Indian consumer trends, particularly the growing demand for SUVs and hybrid vehicles.
SUVs and Hybrids at the Forefront
SUVs have emerged as the strongest growth driver for Toyota in India. Models such as the Fortuner and the Innova HyCross continue to dominate their respective segments, while the introduction of models like the Urban Cruiser Hyryder — a compact SUV developed in collaboration with Maruti Suzuki — has allowed Toyota to tap into the highly competitive mid-size SUV market.
Hybrid technology, a longstanding strength for Toyota globally, is becoming increasingly popular in India as fuel efficiency and environmental concerns gain prominence. The Urban Cruiser Hyryder’s hybrid variant, in particular, has been attracting urban buyers looking for a balance between performance, fuel economy, and reduced emissions.
Collaboration with Maruti Suzuki
The Toyota-Maruti Suzuki alliance has been a game-changer for both brands in India. The partnership has facilitated product sharing, technology exchange, and enhanced production capabilities. Vehicles like the Toyota Glanza and Urban Cruiser Hyryder have emerged from this collaboration, enabling Toyota to access segments where it previously had little presence.
The partnership also allows Toyota to benefit from Maruti Suzuki’s extensive dealer network and manufacturing scale, while Maruti gains access to Toyota’s hybrid expertise and global research infrastructure.
Expanding Production Capacity
Toyota Kirloskar Motor’s manufacturing plant in Bidadi, Karnataka, has been running near full capacity due to rising demand. Industry sources suggest that the company is exploring capacity expansion to meet future needs.
Increased localization of parts and components has also allowed Toyota to keep costs competitive while maintaining its reputation for quality and reliability. This approach is especially crucial in the price-sensitive Indian market, where value-for-money plays a key role in purchasing decisions.
Rising Competition in the SUV Segment
While Toyota’s growth has been impressive, it comes in the midst of intense competition. The Indian SUV market has seen aggressive moves from Hyundai, Kia, Tata Motors, and Mahindra & Mahindra — all of whom are pushing new models, facelifts, and EV initiatives to capture market share.
Despite this, Toyota’s focus on reliability, fuel efficiency, and hybrid options has enabled it to stand out in a crowded marketplace. The brand has also cultivated a loyal customer base, particularly in rural and semi-urban regions where durability and after-sales support are major decision factors.
Sustainability and EV Roadmap
Globally, Toyota has taken a balanced approach to electrification, focusing on hybrid vehicles as a bridge to full electric mobility. In India, the company has reiterated that hybrids will play a crucial role before the market reaches large-scale EV adoption.
However, TKM is also working on introducing battery-electric vehicles (BEVs) for India in the coming years. Executives have hinted that a mass-market EV, possibly co-developed with Maruti Suzuki, could be launched before 2030.
Dealer Network Expansion and Customer Service
Toyota has been steadily expanding its dealer footprint across India to make its products more accessible. The company has also invested heavily in improving customer service experiences — from faster deliveries to enhanced digital booking platforms.
In addition, Toyota has been running “Toyota U Trust”, its pre-owned car business, to tap into the growing used car market. This initiative not only boosts customer confidence but also strengthens brand presence in Tier-2 and Tier-3 cities.
Economic and Policy Boost
India’s growing middle class, increasing disposable incomes, and government initiatives like the FAME II Scheme and GST reductions on hybrid vehicles have indirectly supported Toyota’s rise. Moreover, state-level incentives for eco-friendly vehicles have also encouraged buyers to opt for hybrids.
Toyota Doubles India Market Share: Challenges Ahead
While the trajectory is positive, Toyota faces certain hurdles — including supply chain constraints, chip shortages, and price-sensitive consumer segments that may resist hybrid vehicle premiums. Additionally, as the EV wave gathers pace, the company will need to ensure it remains competitive in the fully electric space.
Looking Ahead
With the Indian car market projected to grow steadily over the next decade, Toyota’s leadership is optimistic. The company plans to introduce more hybrid variants across its range, explore the EV segment strategically, and potentially launch India-specific models to strengthen its position further.
The next few years will be critical as Toyota balances its stronghold in the SUV space with emerging opportunities in electric mobility.
External References:
- Toyota Kirloskar Motor Official Site
- Society of Indian Automobile Manufacturers (SIAM)
- Hybrid Technology Overview – Toyota Global
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