Toyota Kirloskar Motor (TKM) has witnessed a dramatic surge in its net profit, which has grown more than threefold to ₹4,787 crore in FY24 compared to the previous fiscal year. The company’s impressive turnaround has been significantly driven by its strategic alliance with Maruti Suzuki and the rising demand for hybrid and cross-badged vehicles.

A Steady Climb to Profitability

TKM’s journey over the past three years reflects a remarkable recovery:

TKM went from a loss of ₹55 crore in FY21 to a profit of ₹4,787 crore in FY24, highlighting a strategic shift and robust market response to its offerings.

Key Drivers of Profit Growth

The alliance with Maruti Suzuki has been central to TKM’s turnaround. TKM’s portfolio includes several cross-badged models that have gained significant popularity in the Indian market:

These models have collectively contributed around 50% to TKM’s total sales in India. The launch of the Invicto, the first cross-badged model under the alliance with Maruti Suzuki, further strengthened TKM’s market position in FY24.

Financial Performance Overview

TKM’s financial performance in FY24 is characterized by a significant increase in sales and revenue, accompanied by a rise in expenditures:

While the company’s total expenditure increased by about 57% to ₹49,026 crore, this was offset by the substantial rise in income from sales, showcasing TKM’s effective management and growth strategy.

The Road Ahead: Future Plans

Looking forward, TKM is preparing for the next phase of its alliance with Maruti Suzuki. The company plans to launch new hybrid and technologically advanced models, enhancing its product portfolio and aligning with global trends towards sustainability. This strategic focus aims to capture a significant share of the growing hybrid vehicle market in India.

Toyota Kirloskar Motor’s partnership with Maruti Suzuki has proven to be a successful strategy, driving both growth and profitability. With plans for new hybrid and technology-driven models, TKM is poised to continue its upward trajectory, contributing to a more sustainable future for the automotive industry in India.