Industry Analysis Report on Automobile Sector

Shaw Toyota
Toyota Kirloskar Motor fortifies reach with a new dealership in Pune.

 Newly opened Shaw Toyota to offer Toyota’s renowned QDR (Quality, Durability &
Reliability) value to customer in the region.
 Focus on ‘Customer First’ to bring the Best-in-Town product & service experience closer
to customers.

SHOWROOM LOCATION

ICC Trade Tower SN 12/13/14, Ground Floor, ICC Trade Tower, Senapati Bapat Road,
Shivajinagar, Pune-411016

Dealer Principal
Mr. SOURABH SHAW
DEALER PRINCIPAL & CEO

Board of Director

Mr. Masakazu Yoshimura

Managing Director, Toyota Kirloskar Motor

Overview of TKM:

Company Name: Toyota Kirloskar Motor Private Limited

Equity Participation TMC: 89%, Kirloskar Group: 11%
Number of Employees Approx. 7000+
Land Area Approx. 432 acre (approx. 1,700,000 m2)
Building Area 74,000 m2
Total Installed Upto 3,10,000 units
Production Capacity
 Toyota Products

Products Price
Etios Liva 5,34,500/-
Platinum Etios 6,50,400/-
Etios Cross 6,50,000/-
Glanza 6,97,900/-
Yaris 8,65,000/-
Innova Touring Sport 18,92,000/-
Innova Crysta 14,93,000/-
Corolla Altis 16,45,000/-
Fortuner 27,83,000/-
New Camry Hybrid 37,50,000/-
Prius 45,09,000/-
Land Cruiser Prado 96,30,000/-
Land Cruiser 1,46,99,000/-
 Toyota Competitors and Detail

Sr. Name President and Employees Total Total

No. CEO Funding Revenue
1 Ford Akido Toyoda 369,124 - $283.3B
2 Hyundai Jim Hackett 199,000 $756M $158B
3 Honda Takahiro Hachigo 219,722 - $146B
4 Volkswagen Herber Diess 655,722 - $268.2B
5 TESLA Elon R. Musk 48,817 $1.2B $24.4B

Business Unit Strategy

Taylor’s fortune magazine article describes the story of a man named Akido Toyoda and vision
for Toyota future. Akido made the four fundamental changes to reposition Toyota:

 Focus on designing brands that excite Indian and US buyers.

 Be Fast and Move Quickly.
 No more executive rotation.
 “Always make better car” Mentality.

Sales Revenue of last 5 years (TKM)

Year Volume Growth Revenue Growth PAT Market
(in unit) (%) (Rs. In Crore) (%) (%) Share (%)
2013 1,65,504 - 14889.35 - -6.32 6.24
2014 1,28,811 -22.17 15955.33 7.15 -62.96 5.14
2015 1,41,347 9.73 17948.02 12.48 529.47 5.43
2016 1,28,494 -9.09 16752.09 -6.6 504.47 4.61
2017 1,33,364 11.57 21151.59 26.26 557.76 4.71
2018 1,40,645 -1.89 18998.09 -10.18 965.73 4.28
Toyota’s Five Forces Analysis

Toyota’s Five Forces analysis shows that the most significant concerns are competition and the
bargaining power of customers, which are the strongest external factors in the automobile
industry environment. The following are the five forces and their intensities in impacting Toyota:

 Competitive rivalry or competition (strong force)

 Bargaining power of buyers or customers (strong force)
 Bargaining power of suppliers (weak force)
 Threat of substitutes or substitution (moderate force)
 Threat of new entrants or new entry (weak force)
 Conclusion

Toyota is a premium brand of cars manufacturing cars like Fortuner, Innova which has high
valued cars; hence these branded cars are only affordable by few segments of the society

Toyota no doubt being a popular brand for automobile enjoys the perks of market share coming
to the effectiveness of promotions done by the dealership was well planned executed and results
driven