The last time we discussed the SWOT Analysis of Audi, which is the world’s most luxurious car. This time, we’ll take a closer look at the SWOT Analysis of Toyota Kirloskar Motor.
With the motive of manufacturing and selling Toyota cars in India, Toyota Kirloskar Motor(TKM) was established in 1997 in a joint venture between Toyota Motor Corporation and Kirloskar Group.
Because of its powerful marketing strategies, TKM has made incredible progress in its business. If you are looking for marketing strategies to fuel your business growth – check out our Free MasterClass on Digital Marketing 101 by the Founder of IIDE, Karan Shah.
Does this intrigue you to know more about this company? In this blog, we have summarised Toyota Kirloskar Motor’s history and its internal-external factors which include its price strategy, positive & negative attributes, competitor analysis, etc. So let us dive into the TKM company’s overview.
About Toyota Kirloskar Motor
As a joint venture between Toyota Motor Corporation (one of the largest automobile manufacturers in the world) and Kirloskar Group (India’s largest maker of pumps and valves), TKMPL has expanded swiftly to rise as a notable player in India’s passenger car and MUV market segments.
89% of the share is owned by the Toyota Motor Corporation while the Kirloskar group holds the remaining 11% share. TKM’s present plant in Karnataka is built over 850 acres of land with a capacity to hold 110,000 vehicles per annum.
TKMPL entered the automobile industry 24 years back with the launch of Toyota Qualis, an MPV sold by the name of Kijang in Japan. Another multi-purpose vehicle introduced by TKM was Innova embodied with various factors and affordable too. It has been ruling the MPV segment since its launch.
TKM has been soaring in the market industry of car manufacturing with its way up the brand commitment, various design theories and liberal ways of marketing. Toyota cars are known for their reliability and durability. Toyota Kirloskar Motor Private Limited won the Golden Peacock National Training Award in 2000.
|Founder||Toyota Motor Corporation|
|No. of Employees||7,000|
|Market Cap||Rs1,554.31 Crore (2022)|
|Annual Revenue||Over Rs500 Crore (2021)|
|Net Income/ Profit||Rs187 Crore (2021)|
Products by Toyota Kirloskar Motor
Here is the list of categories of products launched by Toyota Kirloskar Motor:
- Hybrid Cars
- Multi-Purpose Vehicle (MPV)
- Sports-Utility Vehicle (SUV)
Competitors of Toyota Kirloskar Motor
Toyota is not the only automotive company out there, hence it continues to face tough competition from other companies. Some of the close competitors of TKM are listed below:
- Maruti Suzuki
- Tata Motors
- Mahindra & Mahindra
- Ford India
Now that we understand the company’s key business, let’s look at the SWOT Analysis of Toyota Kirloskar Motor.
SWOT Analysis of Toyota Kirloskar Motor
SWOT Analysis of Toyota Kirloskar Motor can show how a well-established company uses its opportunities to ensure its growth. It can show how the company takes advantage of its strengths to use the opportunities while working on its weaknesses. SWOT Analysis of Toyota Kirloskar Motor will also reveal its expansion plans.
To better understand the SWOT analysis of Toyota Kirloskar Motor, refer to the infographic below:
Now first let’s begin with the strengths of the company from the SWOT analysis of Toyota Kirloskar Motor.
Strengths of Toyota Kirloskar Motor
The strengths of a company are the unique qualities that provide it with an advantage in acquiring more market share, attracting more customers, and maximizing profitability. Toyota Kirloskar Motors’ strengths are as follows
- Strong Brand Name: The parent organisation Toyota Motor Corporation (TMC), a renowned global company gives TKM a very strong brand name with a good reputation.
- Innovative Products: Toyota has had a wide range of innovative car variants to offer since it started in 1997. Toyota’s Innova has been ruling the MPV segment since its launch.
- Extensive Network: A spacious network of informed and interconnected networks gives the company a way into new and comprehensive information. TKM has access to abundant financial resources because of its wide & extensive distribution and service network.
- Brand Awareness: To increase the brand awareness of the company, Toyota engages in excellent advertising and marketing campaigns through TVCs, online ads, print media, social media, etc.
- Expert Service: Toyota provides expert service with the help of its professionals and committed employees. Expert services if managed and delivered efficiently to meet the goals and objectives of a business can lead to an elevated growth of the company.
- Skilled Workforce: To establish a separate unit in India different from Japan, requires professional human resources to grow bigger than what it is today. And at the right time, TKM had invested in onboarding the best resources to get big. Today the motor company has 7,000+ skilled human resources.
- Advanced Technology: Since TKM originated in Japan, the company uses the best technology to keep itself one step ahead of its competitors. The company always try to indulge in hybrid and green technology concerning the environment.
- Production Capacity: TKM’s present plant in Karnataka is built over 850 acres of land with a capacity to hold 110,000 vehicles per annum and the second manufacturing plant located outskirts of Karnataka has a capacity of 210,000 vehicles per annum and that’s huge.
Weaknesses of Toyota Kirloskar Motor
Weaknesses are elements of a company or brand that can be strengthened. The following are Toyota Kirloskar Motors’ flaws:
- Insufficient Management Skills: Inferior management skills carry long-lasting effects that may inhibit the growth of the company. Due to its insufficient management skills during the pandemic, TKM recorded a net loss of Rs 55 crore in 2021.
- Controversy: The study examines the impacts on sales and trade of a company due to their controversies. One of the considerable faults of the Toyota Kirloskar Motor is the issues associated with the gender inequity and multiplicity in the business that it faced for a while.
- Penetration Inability: Toyota Kirloskar Motors’ biggest inability is not being able to penetrate the world market. The company is only popular in India and some of the Asian regions other than Toyota Kirloskar Motors’ presence in Europe and the North American market is not that fascinating.
Opportunities for Toyota Kirloskar Motor
Potential areas of attention for a corporation to enhance results, expand sales, and, ultimately, profit is known as opportunities. Toyota Kirloskar Motors opportunities are
- Showrooms: To see the growth in the Indian market, Toyota Kirloskar Motors needs to open more showrooms. Interlacing the gap between the physical and digital experience of customers could be a good opportunity for Toyota Kirloskar Motors in soaring the automotive industry. Currently, the showroom presence of TKM in developing areas is less than ordinary.
- Experience: Strong brand acknowledgement, liberal & large-minded ways of marketing and the unique brand experience could be utilised to reduce the threat from potential competitors.
- Investment: The automobile market in India is projected to grow at the rate of 12-16 per cent. Grabbing this opportunity, TKM can invest in a small scale business to grow at a larger scale.
- Collaborations: Toyota Kirloskar Motor can jointly work with big car manufacturers to bring innovations to the market by improving relations. Just like recently, Maruti Suzuki’s Nexa is working with Toyota on a project to launch small electric SUVs on the market.
- Technological Developments: Technology succeeds with numerous advantages among many departments. Operations can be automated to diminish costs. Technology enables better data to be obtained from customers and improves trading accomplishments.
Threats to Toyota Kirloskar Motor
Environmental variables that can damage a company’s growth are known as threats. TKM’s threats include the following:
- Rising Costs for Materials: The rising cost of materials is a relatively alarming sign for all automotive industries. According to the experts, there would be a steady rise in prices of the materials related to the automotive industry.
- Increasing Competition: The retail trade of the automotive industry is quite competitive. As Toyota Kirloskar Motors is not the only company in the automobile industry, it continues to face tough competition in the business.
- Customer Expectation: Meeting the expectations of customers can be challenging. As more and more people are inclined towards Toyota’s products, the expectation of those customers for the new launches is growing and diversifying.
- Environment Regulations: There are some rules and regulations imposed by the government concerning the environment of the country. The introduction of ‘fuel-efficiency standards for cars is one of the regulations that can be a threat to Toyota Kirloskar Motors Private Ltd.
This ends our extensive SWOT analysis of Toyota Kirloskar Motors. Let us conclude our learning below.
Toyota Kirloskar Motor is a widely known automobile manufacturer in India. Globally, It has been the pioneer in hybrid technology. TKM is also focusing on moving towards a greener and more sustainable future to bring a net positive impact on the planet and society. Toyota Kirloskar Motor (TKM) was recently felicitated with the certificate of recognition for the submission of energy compact goals by the Ministry of New and Renewable Energy(MNRE).
TKM has been efficient in organising the important factors linked to success and failure in the business world. It has succeeded in providing linearity to the decision-making processes and allowing complex ideas to be presented systematically with their better marketing strategies and efforts. If you are interested in learning more and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
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