Hybrid surge, record revenues, and rising exports propel Toyota Kirloskar to its most profitable year yet, cementing India as a top global growth hub.
11 Aug 2025 | 19696 Views | By Ketan Thakkar & Ashutosh Radhey Shyam
Toyota Kirloskar Motor (TKM), the Indian arm of Toyota Motor Corporation, has closed FY25 with its strongest-ever performance, posting a consolidated net profit of ₹5,672 crore — up 18.5% from ₹4,787 crore in FY24.
Surging demand for hybrid models, an expanded retail network, and incremental volumes from Maruti Suzuki ...
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Toyota Kirloskar Motor (TKM), the Indian arm of Toyota Motor Corporation, has closed FY25 with its strongest-ever performance, posting a consolidated net profit of ₹5,672 crore — up 18.5% from ₹4,787 crore in FY24.
Surging demand for hybrid models, an expanded retail network, and incremental volumes from Maruti Suzuki helped Toyota Kirloskar post its highest-ever production and sales figures.
The company’s FY25 performance underscores its rising influence in Toyota’s global operations and reinforces its position as a key player in India’s mid-to-premium passenger vehicle market. Record revenues, a sharp jump in dividend payouts, and sustained investments in future-ready manufacturing mark a year of significant milestones.
Revenue from operations grew 16.2% to ₹64,895 crore (FY24: ₹55,866 crore), driven by higher realisations from hybrid models and expanded production. Profit before tax increased 23% to ₹6,494 crore, while the dividend payout rose sharply to ₹3,576 crore — 5.1 times higher than FY24’s ₹698 crore —signaling robust cash flows and shareholder confidence.
Outperforming in a Sluggish Market
In FY25, Toyota Kirloskar Motor (TKM) delivered a standout performance in India’s passenger vehicle market, achieving 28% volume growth against an industry backdrop of low single-digit expansion. This growth was fueled by strong demand for the Innova Hycross and Urban Cruiser Hyryder, supplemented by incremental volumes from the cross-badged MPV Rumion.
As a result, TKM crossed the ₹60,000 crore ($7 billion) revenue mark for the first time, while its market share in the UV and MPV segments reached record highs of 15% and 14%, respectively.
The company’s financial position strengthened despite higher shareholder payouts. Cash and bank balances rose to ₹12,099 crore ($1.5 billion), even after distributing a record dividend of ₹3,575.8 crore—representing 63% of net profit.
Over the past five years, TKM’s net revenue has nearly quadrupled to ₹64,865 crore, with an additional ₹677.17 crore in other income bringing total FY25 revenue to ₹65,542 crore—approximately one-third of Maruti Suzuki’s. While average realizations dipped from ₹21.23 lakh to ₹19.25 lakh per vehicle due to a greater share of lower-priced models, gross profit margins improved by 40 basis points to 22.15%.
This was supported by continued reductions in raw material-to-sales ratios, which fell from 83.32% in FY21 to 78.66% in FY25. The average raw material cost per car stood at ₹15.14 lakh, translating into a gross profit of ₹4.31 lakh per unit.
Operating margins moderated slightly to 11.91% from 12.39%, reflecting a 33% increase in other expenses to ₹4,221 crore. Nevertheless, TKM’s margins remained about 20 basis points higher than the industry leader’s. The company generated ₹2,29,393 in operating profit per vehicle—almost three times that of the market leader.
Product mix continued to shift toward higher-value models. The Hycross and Hyryder posted year-on-year volume growth of 18% and 23%, respectively, bringing combined sales to 1,23,182 units versus 1,01,913 in FY24. Net profit rose 18.51% to ₹5,672 crore, resulting in per-unit profitability of ₹1,68,402 compared with ₹1,81,976 the previous year.
TKM’s FY25 performance illustrates the strategic power of portfolio mix, cost discipline, and scale leverage in a mature market. Even as average realizations softened, the company maintained margin expansion through procurement efficiencies and product positioning. With UV and MPV market share at record levels, TKM is well-placed to sustain profitability in the face of industry headwinds.
This marks TKM’s most profitable year in its 25-year history in India, with margins that remain among the best in the industry.
TKM achieved its highest ever annual sales in FY25, dispatching 3,37,148 units — up 28% from 2,63,512 units in FY24. Domestic volumes accounted for 3,10,956 units, while exports rose 59% to 26,192 units, reinforcing India’s growing role as an export base.
The SUV and MPV segments, particularly hybrids such as the Innova Hycross, Urban Cruiser Hyryder and Camry HEV, saw over a 30% YoY increase. The Fortuner maintained leadership in the D-segment SUV category, while the Urban Cruiser Taisor — developed under the Toyota-Suzuki alliance — strengthened TKM’s presence in the compact crossover space. Models such as the Glanza and Rumion added to the diversity to the portfolio.
Hybrid technology adoption accelerated, the company has lion's share of India’s strong hybrid passenger vehicle market, ahead of Maruti Suzuki and Honda.
Market Share and Global Standing
TKM’s passenger vehicle market share in India rose to ~7.8% in FY25 from 6.1% in FY24. The Indian market reached 43,01,848 units, with TKM ranking among the top five OEMs alongside Maruti Suzuki, Hyundai, Tata Motors, and Mahindra & Mahindra.
India has become Toyota’s fourth-largest market globally, driven by strong domestic demand and rising exports. It is now Toyota’s fastest-growing and one of its most profitable manufacturing hubs. The Toyota-Suzuki alliance has further amplified this through shared production and technology synergies.
Capacity Expansion: Maharashtra Plant to Drive Next Phase
In FY25, TKM acquired industrial land in the Bidkin Industrial Area, Chhatrapati Sambhaji Nagar (Aurangabad), Maharashtra, for a new plant under its ₹26,000 crore India investment plan. The facility will produce flex-fuel, hybrid, and BEV models for Toyota’s multi-pathway mobility strategy.
Alongside the third plant under construction in Bidadi, Karnataka, TKM’s annual capacity is projected to reach 4.42 lakh units by 2026, with scalability to 1 million units. Exports — including models such as the Urban Cruiser Hyryder and Glanza to Africa and the Middle East — hit record highs. Over 80% localisation in several models has strengthened cost efficiency and supplier ecosystem development.
Retail and Lexus Expansion
The dealer network grew 34% in FY25, expanding from around 577 touchpoints in FY24 to 773, with coverage across metros, state capitals, and Tier-2/3 cities. Customer programmes like T Care and T Gloss enhanced the ownership experience.
The Lexus brand expanded its footprint to 26 exclusive touchpoints across 19 cities, up from 16 in FY23. Hybrid-led models such as the Vellfire and Camry Hybrid continued to attract affluent buyers seeking sustainable luxury mobility.
Aiming for a New High
For FY26, TKM will continue its multi-pathway approach — hybrids, flex-fuels, and BEVs. The upcoming Urban Cruiser EV, to be built at Suzuki Motor Gujarat, will mark Toyota’s EV entry in India, complementing its hybrid leadership.
With capacity expansion, a strong financial base, and an expanded retail network, TKM aims to sustain growth while advancing its vision of cleaner, technology-driven mobility