Toyota not to establish auto finance arm in India

Despite the establishment of global auto finance arms in India by so many foreign car makers, the car maker, Toyota Motor Corporation has taken a decision which is against any such move. On the other side, Toyota Kirloskar has decided to slowly shift the production of its complete range of passenger cars to its second plant in the country.

Mr Yukitoshi Funo, Toyota Motor Corporation (TMC) Executive Vice-President and member of the board, stated that the company officials in India were against any such step as they mentioned certain policy hurdles. Mr. Funo further added that it is not so easy and smooth to establish a finance arm in India. The company’s officials are resisting any such move in India. Mr Sandeep Singh, the deputy managing director of Toyota Kirloskar Motor (TKM) commented that according to the laws of India, the funds for any kind of auto finance have to be obtained from the country only and that is why, Toyota Motor Corporation did not find it a sufficient opportunity for establishing any such subsidiary. Toyota Financial Services Corporation has got its presence in more than thirty countries and it covers around ninety per cent of such markets in which Toyota sells its products.

On the other side, Toyota Kirloskar has thought of slowly shifting production of all its passenger cars to the other plant that has been made at the expense of more than Rs 3,200 crore. The step like this will make available the capacity for making Toyota's SUV, Toyota Fortuner and other products. This will also lessen the length of the waiting periods for SUVs, for example, Toyota Fortuner. Also, on one hand, the parent company, Toyota Motor Corporation has denied any plan of introducing a product smaller than Toyota Etios while on the other hand, Toyota Kirloskar Motor is speculated to mull over the options of introducing products like mini vans with higher engine capacities, said one of the officials of TKM. But any such step will be taken only after measuring the success of Toyota Etios.

Read More on : Toyota Etios 2013