Toyota goes rural to boost growth

Toyota Kirloskar Motor (TKM) has reported record high sales numbers during September 2009. The carmaker sold 6187 units, which is an eight percent growth over September 2008. TKM attributes this strong performance to its push into semi-urban and rural markets as well as the recent introduction of the Fortuner SUV. The company says that it plans to continue with its aggressive expansion plan in India by adding to its existing network of dealerships across the country, and by tying up with nationalised banks to make car loans more accessible. According to Sailesh Shetty, general manager, (sales), “With rising rural sales and the impending launch of our compact car, we believe setting up dealerships in small towns is viable. Alliances with nationalised banks is part of our expansion strategy, and we hope to achieve the greater penetration in smaller towns.” Currently, Toyota has 90 dealerships and has firmed up plans to enhance its dealer network to 150 outlets before the launch of its compact car in 2011. This dealership thrust will be largely in non-metro towns like Allahabad, Srinagar, Shillong, Belgaum, Ambala, Tirupati, Meerut and Patna. TKM has been expanding its dealerships using its DIVA concept which it says will set benchmarks in the auto industry in India and will be implemented at all upcoming Toyota dealerships. These dealerships will have contemporary looks, cater to a varied customer base and be able to handle larger customer volumes. They will also provide quicker test drives for prospective customer and other value-added services like vehicle exchange, as well as registration, insurance and finance services. Toyota had started with a network of 30 outlets in India in 2000. -By Darius Lam