Toyota Rumion, based on Maruti Suzuki’s Ertiga, will allow the Japanese auto major to tap into the compact MPV segment, where 325,000 vehicles were sold in the last calendar year.
Toyota operates in India through Toyota Kirloskar Motor (TKM), a joint venture with Kirloskar Group.
“We are seeing a strong demand for utility vehicles in the Indian market. The compact MPV market itself grew by 22% in the last calendar year,” Atul Sood, vice-president (sales and strategic marketing) at Toyota Kirloskar Motor, told ET. “With the Rumion, we are targeting consumers, dominantly businesspersons, who want a vehicle for daily commuting and also for travelling with their families over weekends.”
Toyota’s MPVs in India include best-sellers Innova Crysta and Innova Hycross – both priced upwards of Rs 20 lakh – and Toyota Vellfire at the premium end of the market.Besides Rumion, TKM also sources premium hatchback Glanza from alliance partner Suzuki for sale in India.“The intent (of the existing tie-up) is to strengthen the competitiveness of both the companies by applying our strong points and learning from each other,” said Vikram Gulati, country head of TKM. Such tie-ups will give Indian customers “varied choices of products to meet their evolving needs and expectations”, he added.The company declined to share details regarding the contribution of alliance products in total sales.
Toyota also plans to introduce electrified vehicles in the market along with partner Suzuki to shore up volumes sustainably in India.
Once renewable energy accounts for a more favourable part of the energy mix and charging infrastructure for electric cars comes up across the country, Gulati said the company will examine opportunities to bring in pure electric vehicles.
With around 70% of the electricity in India generated from coal-based power plants, TKM feels EVs currently are not an optimal solution to reduce vehicular emissions in the market here.
Overall, Toyota said it continues to see strong demand for its products in the local market and is on track to clock its highest-yet sales this year.
Sood said all the company’s products are doing well, including new launches Hyryder, Hycross, and Toyota Hilux. Similarly, other key products like Vellfire, Fortuner, Legender, Camry and Crysta continue to dominate in their respective segments, he added.
With broad economic parameters remaining positive and government spends remaining healthy, the company expects a boost in sales, buoyed by new launches in the passenger vehicle segment, in the remaining months of the year. “We are expecting that sales this year will be among the best-ever,” Sood said.
The company has grown volumes by 26% to sell 77,439 units in the first four months of the ongoing financial year.
TKM’s best sales performance before 2022-23 when it sold 174,015 units was in FY13 at 165,504 units.