Toyota Kirloskar Motor (TKM) has recorded a 50 percent year-on-year sales decline at 5,555 units in August compared to 10,701 units in August 2019. This is including its Etios twins, which has now been discontinued in the BS VI emissions regime.
The company, however, registered a 3 percent month-on-month uptick compared to July 2020, when it had sold 5,386 units.
According to Naveen Soni, senior-vice president, Sales and Service, TKM, “We began August with a lot of apprehensions due to the skewed rise in Covid positive cases in Karnataka state and throughout the country. It had a resultant impact on both demand and supply scenarios. Fortunately, August witnessed an increase in demand for most of our models akin to pre-Covid times, including customer enquiries and orders. However, supplying vehicles from our end (to dealers) posed as a challenge due to the rising number of Covid cases in Bangalore and its surrounding areas, where most of our workforces reside. This even led us to ramp down production to a single shift so as to be able to ensure that we are taking all measures to safeguard the health and safety of our employees first, and of the community at large. Thankfully, more than half the Covid infected workers at TKM have recovered completely and are reporting back at work, after having completed all necessary protocols as laid down by the state health authorities. This has helped us immensely in inching up supplies so as to be able to cater to the increasing demands of our customers.”
“August also witnessed a steady rise in retails (sales from dealer to customers) and thanks to ‘Toyota pull system’ of operations, we are happy that we could squeeze the system inventory to sell much higher to customers despite the production constraints, thereby helping us clock 25 percent higher retails when compared to the wholesales (sale from TKM to dealers) this month and also resulting in better inventory management at dealerships,” he added.
The company is gearing up for the launch of its first sub-compact SUV offering, the Maruti Suzuki Vitara Brezza-based Urban Cruiser, for which the bookings have already commenced.