Given the slowdown in car sales in India, Toyota Kirloskar Motor (TKM) is scaling back production by 30% for the month of December. TKM, which produced 2,886 units last month, will only be making around 2,020 units this month and based on its performance in December, the company will decide on its production figures for the next 2-3 months.
TKM, which had earlier announced a sales target of 60,000 units for 2008 (against 54,181 units sold in 2007), posted a decline of 48.55% in its sales in November this year, selling only 2,087 units as against 4,056 units sold in November 2007.
However, Toyota is holding firm on its investment plans for India, which will entail pumping in around Rs 3,200 crore. ‘Everywhere else in the world, Toyota has put on hold all investments for expansions, except India,’ says Hiroshi Nakagawa, MD, TKM. The company is also working on a CNG-powered variant of the Innova MUV, which it plans to launch within the next two months.