Japanese auto major Toyota launched a new version of its popular SUV (sports utility vehicle) Fortuner in India priced between Rs 25.92 lakh and Rs 31.12 lakh (ex-showroom Delhi). DH’s Umesh M Avvannavar sat down with Toyota Kirloskar Motor Director and Senior Vice President (Sales & Marketing) N Raja on the sidelines of the car’s product presentation in Kochi, recently. Excerpts from the interview:
How has the journey of Toyota Fortuner been in India so far?
The first generation Fortuner was first launched in India in 2009, followed by product refreshments in 2012 and 2015. Toyota, the largest automobile manufacturer in the world, offers an entire range of mid-sized and premium SUVs for the Indian roads, and Toyota Fortuner is one such key product which has grabbed the customer’s attention ever since its launch in 2009, in India. The Fortuner came to India, created an all new segment and has ever since conquered the medium SUV segment. We have sold close to one lakh units of the Fortuner in India since launch.
The all new Fortuner launched this month, has several changes when compared to the previous model. However, the key new changes are: New frame with impact absorbing structure and pedestrian protection support. All new power packed 2.8 L diesel engine available with a new 6 speed automatic transmission with sequential & paddle shift and a new 6 speed manual transmission. New 2.7 litre petrol engine with an all-new six-speed automatic & 5 speed manual transmission.
How important is the Indian market for Toyota globally?
Toyota sees India as the most important contributors to its global growth strategy. India is an ever growing market, very important in the Toyota’s global growth plans. It has the potential to be a supply base for Toyota's global industrial operations. Moreover, top 50 global suppliers have operations in India. Japan, the US and European suppliers and technology available in India. We see a huge potential owing to the growth of the Indian middle class. This gradual rise is backed with increased purchasing power which has led to evolving upper class.
Is the new frame shared with the new Innova Crysta?
The IMV (Innovative International Multi-purpose Vehicle) series shares the same platform, however the new Fortuner frame’s rigidity and dependability is designed in a way so as to match the Toyota Land Cruiser. In addition to this the frame has been enhanced to meet a premium SUV’s requirement like drive quality, ride comfort and safety.
Why do you think that Fortuner is still a strong competitor in the Indian car market?
While developing the new Fortuner, we took into consideration our customer feedback and mainly focused on areas like toughness, technology and safety. We are confident that the new Fortuner will be well appreciated by our customers. With the new enhancement and developments made in the product, we believe that the new Fortuner will continue to impress customers across.
What are the trends in SUV segment, where Indian families are concerned?
The demand for SUVs and crossovers is picking up speed in India. At present, the compact SUV segment is the hottest in the Indian automobile industry, and players are trying hard to make their presence felt. With the competition increasing rapidly, we are also studying how people are looking at the compact SUV segment. When the Fortuner came to India it created an all new segment and has ever since conquered the medium SUV segment.
What is your domestic market share, with respect to Fortuner? How about exports market? How many countries do you export Fortuner? Please specify in percentage.
The Fortuner has been a market leader in its segment with 70% average market share ever since its launch in 2009 and is better known as a true SUV. The current generation Fortuner is produced in 11 countries: Thailand (TMT), South Africa (TSAM), Argentina (TASA), Indonesia (TMMIN), Malaysia (UMWT), Vietnam (TMV), India (TKM), Pakistan (IMC), Venezuela (TDV), Egypt (TMEE), and Kazakhstan (SAP). In India, The new Fortuner will be manufactured at TKM Plant 1 in Bidadi, Karnataka along with the Innova Crysta. We do not export the Fortuner.
What is your production capacity?
Our overall plant production capacity is 310,000 units per year. Plant one has a capacity of 100,000 units.
What level of localisation have you achieved and what is your import dependence? What challenges do you face in localisation?
We encourage localisation at a regional level and we localise the engine, frame and many other parts increasing the localisation level when compared to the old Fortuner.
What is the roadmap to strengthen presence in India?
We will constantly study the market and based on our customer needs we would be enhancing our product offerings. Our endeavor is not just to sell volumes but also selling safer cars. Safety is of utmost priority to us. We would like to be number one in customer satisfaction (both in sales and service) and number one in dealer satisfaction and retain our one million happy customers. Improve quality of operation and deliver global level service.
Tell us about your service setup. How do you plan to ramp it up when sale volumes rise?
Toyota’s aim has always been to bring our quality services closer to our customers and it is in line with this philosophy that we have been increasing our dealer network. We will continue to expand our network and this thrust will largely be in smaller towns and cities
What are the products that we can expect Toyota to bring to India?
We are studying the market and based on our customer needs we would be enhancing our product offerings. Currently, our endeavour is achieve the highest customer satisfaction and not just to sell volumes but also selling safer cars.
As a global player, how do you read advancement of the schedule for BS (vehicle emission) norms? How do these events change your strategy?
As a responsible global auto manufacturing company at the forefront in offering advanced and environment friendly motoring technologies, we are globally compliant with the stringent emission standards. We have the advanced technology required however it needs to be adapted to road conditions, fuel conditions and driving conditions which needs a lead time. Toyota appreciates the government initiative to solve the critical issue of improving air quality which is also a key priority and focus for us in the country, however our request to the government is to look at a more comprehensive roadmap which would help automakers effectively plan the long term product strategy. This will create a more amiable environment for foreign investors to successfully contribute to ‘Make in India Campaign’ We are always ready, because we have models. The key point is whether the technology providers are ready with the necessary support towards Euro VI. And will the government be ready with its refineries and distribution across India on Euro VI
Toyota has a technological edge in hybrid (vehicles). What scope do you see for hybrids?
Toyota positions taking actions towards environmental problems as one of the most important mission and have being introducing hybrids since 1997 which we recently achieved 9 million cumulative sales. Toyota believes that the more widely used environmentally-friendly vehicles are, the more positive an impact they will have.
Our current goal in India is to raise awareness towards hybrids and its contribution towards environment. The government announced incentive of Rs 70,000 under FAME scheme has also aided the company in generating more enquiries and orders from customers.
The automobile industry is increasingly being seen as polluting. Scrapping policy for old vehicles. For India, if you want a scrappage policy with a view to controlling pollution, it can’t be a one-time scheme. It has to be continuous. The scrappage scheme is workable and that is the model we should be following. The governments of earlier days have used the auto industry as a resource gathering sector; so they charged 15-year road tax, lifetime tax, etc. Suppose the government had only charged for a short period, they can tell you to take the car off the road after that. Besides, there has to be a visual inspection and testing as to whether the engines are too old or too rusty and then a decision has to be made as to whether to scrap a car or not.
At the end of the day, a scheme must be worked out where all three players — the manufacturer, government and customer — pay a price. It is good for the industry because it will help us sell more cars; it is good for the consumer because it will help him have the latest technology and, of course, for the government as, though they may be giving up a little bit on the taxes in old cars, they will be earning on the new ones that are sold. That said, to bring down pollution significantly, other sources of pollution also need to be addressed. The vehicular pollution is small compared to other sources.