Toyota to launch separate marketing arm?

26 September 2006

Although Toyota''s fleet might look its gleaming best, some restructure is apparently under way at Toyota Kirloskar Motors (TKM). While it will look after output, CNBC-TV18 reports a new company, Toyota Kirloskar Sales, will handle the group''s sales and marketing.

The unit will be part of Singapore-based Toyota Asia Pacific. Company sources say this will boost decision-making efficiency. But Toyota says there is no such move.

However, Vikram Kirloskar, vice chairman, Toyota Kirloskar Motors, denies this. He says, "I don''t know why it should be spun off because we are not really importing and selling cars here. And why add another layer of bureaucracy to something."

Experts say the move comes because the Innova''s sales have apparently slumped. TKM had priced Innova at Rs6.5 lakh, which, company sources say, was Rs100,000 more than the product planning department had recommended.

Besides, even the Toyota Corolla seems to be facing rough times in the market after Honda launched its Civic.

Toyota is believed to have reduced production and cut prices. And now company sources say Toyota has more than tripled its advertising and marketing budget to Rs200 crore from Rs72 crore last year. It hopes all those moves will push its cars and its sales graphs as well.