After first-ever loss, Toyota hopes to rev up sales this year

Japanese car maker Toyota's Indian operations has posted a loss for the first time in a decade following poor market conditions and labour issues.

“Last fiscal (2013-14) wasn’t good for the entire industry but sales during the first quarter of this fiscal year have been encouraging,” Toyota Kirloskar Vice-Chairman Shekar Viswanathan told BusinessLine .

He did not disclose the quantum of loss the company had posted in 2013-14. “In spite of a blip, we are still very positive about the Indian market and will introduce newer models whenever needed and continue to expand,” he said.

In 2013-14, the company’s volumes fell 18 per cent to 155,000 units. Revenue for the same period decreased nearly 6 per cent to ₹13,200 crore.

It recorded domestic sales of 43,326 units in April-July 2014 compared with 41,555 units in April-July 2013. Viswanathan pointed out that with exchange rates stable since the new government took over at the Centre, the auto maker has started showing signs of recovery.

Some of its models, including the SUV Fortuner, Etios Cross and sedan Corolla Altis have seen good sales in the current fiscal year, leading to longer waiting periods for delivery of these models.

The company has also managed to stock up on spare parts leading to faster service for customers.

Viswanthan said that discipline had returned to the shopfloor and the dispute over wages for over 4,500 workers had been referred to an industrial tribunal.

Over 30 workers still remain suspended on charges of indiscipline; charge-sheets have been filed and an internal probe is now on.

In March, workers resorted to a strike to press for higher wages and better conditions at the carmaker’s two factories near Bangalore.

Viswanathan lauded the Centre for not rolling back the excise duty concession that was made last year and said he was hopeful that it would be reduced further to fuel the growth of the car industry.

“It is the second highest taxed sector after the tobacco industry, with about 75 per cent of the cost of the vehicle going towards taxes in one form or the other,” he pointed out.

The Bangalore-based carmaker also expects the Government to release funds for the National Electric Mobility Mission Plan, 2020. “It will go a long way in reducing India's dependence on fossil fuels,” said Viswanathan.