Toyota Kirloskar, the Indian subsidary of Toyota Motor Company, not too long ago introduced the discontinuation of its bold C SUV undertaking, internally known as 340 D, initially slated for launch in 2026. Regardless of plans for enlargement, together with a major funding of USD 400 million for a 3rd manufacturing facility, the undertaking failed to satisfy the mandatory technical and industrial viability requirements. Sources conversant in the matter cite the undertaking’s incapability to align with evolving international demand dynamics as a major cause for its shelving.
The C SUV undertaking was anticipated to play a pivotal function in Toyota’s product portfolio, with a projected annual manufacturing quantity of 75,000 items, with as much as 50 p.c earmarked for export from India. Nevertheless, on account of lower-than-expected enterprise potential and a strategic shift in the direction of prioritizing sustainable profitability, the corporate opted to discover different choices. One such different being thought-about is the introduction of the Corolla Cross to the Indian market, aiming to strengthen Toyota’s foothold within the Rs 20 lakh to Rs 50 lakh phase.
The choice to discontinue the C SUV undertaking could influence the timelines for the development and operationalization of the brand new manufacturing facility. Regardless of this setback, Toyota Kirloskar stays steadfast in its dedication to its long-term goals in India. The corporate is actively pursuing plans to ramp up manufacturing of its present fashions, such because the Hyryder and Grand Vitara SUVs, at its Bidadi facility.
Responding to queries concerning the undertaking, a Toyota Kirloskar spokesperson declined to remark, citing the delicate nature of company technique and product plans.
In November 2023, Toyota Kirloskar had introduced its intention to determine a 3rd manufacturing facility close to Bengaluru. This transfer was projected to create roughly 2,000 new job alternatives and improve the corporate’s annual manufacturing capability to over 1,00,000 items. With this enlargement, Toyota Kirloskar’s general annual manufacturing capability in India is predicted to achieve 4,10,000 items. Regardless of encountering challenges in 2024, resembling disruptions in international automobile certification processes, the corporate stays optimistic about its future prospects within the Indian market.
The shelving of the C SUV undertaking underscores the aggressive nature of the Indian mid-size SUV phase. Toyota had positioned the C SUV to compete on this phase, intending to supply a complete package deal of premium options, probably together with hybrid and absolutely electrical powertrain choices. Notable rivals on this area embrace widespread fashions just like the Hyundai Creta, Kia Seltos, MG Hector, Tata Harrier, Mahindra XUV700, and Skoda Kushaq, every providing distinctive options and aggressive pricing.
Whereas the choice to halt the C SUV undertaking could current challenges, Toyota Kirloskar stays targeted on delivering high-quality automobiles and strengthening its place within the Indian automotive market. By way of strategic decision-making and continued funding in product improvement and manufacturing capabilities, the corporate goals to navigate by means of challenges and capitalize on alternatives for progress within the Indian automotive panorama.
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