1. Executive Summary
Toyota Motor Corporation entered India in 1997 in a joint venture with the Kirloskar Group. Toyota Kirloskar Motor Private Limited is a subsidiary of Toyota Motor Corporation of Japan, for the manufacture and sales of Toyota cars in India.
The company Toyota Kirloskar Motor Private Limited (TKMPL) according to its mission statement aims to play a major role in the development of the automotive industry and the creation of employment opportunities, not only through its dealer network, but also through ancillary industries with a business philosophy of "Putting Customer First".
TKMPL's have plants at Bidadi and Bangalore with capacity of 80,000 and 70,000 vehicles per annum respectively. Both plants have a combined capacity of 150,000 vehicles per annum. On 16 March 2011, it announced that it was increasing production to 210,000 vehicles per annum due to increase in demand for its models especially the Etios and Fortuner.
With effect from June 1, 2012, Toyota Kirloskar Motor increased the prices of Etios diesel and Innova by 1 per cent and Fortuner and Etios Liva diesel by 0.5 per cent. The price hike is on account of the weakening of Rupee. Toyota is boosting its production as plans to hike the production capacity of its Etios series models by 75%.
Toyota Kirloskar Motor has launched its Waku Doki Q Service Campaign from July 16- September 15, 2012. The campaign provides free check-ups and custom offers on Toyota cars across Toyota dealerships in the country.
2. Situat...
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The vehicle manufacturing plant is located at Burnaston in Derbyshire, the engine manufacturing plant is located at Deeside in North Wales.(Toyota Manufacturing UK 2006 ) the company has, since production began in 1992, grown to its current size with 5,500 members are employed. As ...
As one of the leading automobile manufacturers in the world, Toyota ranks within the top three worldwide. Due to their unique business model, they are now have a market share of 14% in the first four months of this year. That is an astonishing 2.3% jump from the previous year. According to Autodata.com, the Toyota City based automaker ranks fourth in United States sales.
Toyota Motor Corporation is a Japan based company, whose headquarters are located in Aichi Prefecture. The company was founded by Kiichiri Toyoda in 1937. Currently the company’s CEO is Akio Toyoda. Toyota is basically into cars and it is one of the top players in the world in this industry. Toyota also owns two other brands namely Lexus and Scion, which gives the company a lot of advantage over it’s other competitors. Toyota manufactures sedans, saloons, suvs, muvs, pick-up trucks and buses. During the year 2013 Toyota had approximately 333,498 employees, who were working globally. In March 2013, Toyota was ranked as the thirteenth biggest organization globally in terms of its revenue. In the following table we can see the financial report of Toyota Motor Corporation in the year 2013-
(5) Liker, Jeffrey K. The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. New York: McGraw-Hill, 2004. Print.
Toyota Australia is a wholly - owned subsidiary of Toyota Motor Corporation whose headquarters is located in Japan. Toyota Australia keeps the largest market proportion of Australia's new car market at this time. In Australia, they have been the highest new cars sellers since the sales period of 2003-2004 outwitting Holden. (Federal Chamber of Automotive Industry 2015) Toyota Australia as a market leader in automotive industry has a significant impact in Australian economic. Having been in Australia for over 50 years, Toyota has contributed widely in three major areas: increasing employment, increasing automotive export-import, and empowering local supplier.
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automotive industry. The market scope that Toyota uses is a broad one that encompasses nearly every type of customer that is in the market to purchase an automobile. Toyota is able to target such a large market because they have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that are interested in saving the environment, along with the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
Phneah, E. (2013, May 30). Toyota to roll out big data traffic service in Japan. Retrieved from www.zdnet.com: http://www.zdnet.com/toyota-to-roll-out-big-data-traffic-service-in-japan-7000016079/
Toyota has adopted an expansion strategy aimed at increasing the company’s market share through sustainable growth. This will be done based on the delivery of high quality, and safe cars, at an affordable price. As the company seeks to expand to new markets, focus will be on maintaining an organizational culture that allows optimum efficiency in the ever dynamic global market.
Toyota Motor Corporation is one of the largest automakers in the world. At its annual conference in Tokyo on May 8, 2008, the company announced that activities through March 2008 generated a sales figure of $252.7 billion, a new record for the company. However, the company is lowering expectations for the coming year due to a stronger yen, a slowing American economy, and the rising cost of raw materials (Rowley, 2008). If Toyota is to continue increasing its revenue, it must examine its business practice and determine on a course of action to maximize its profit.
Their principles and practices are very simple and yet they are still evolving over 50 years later. I think that the fact that they could keep all their employees during the 2008 recession speaks to their ability to overcome any obstacle by adapting to their environment. Instead of immediately turning to layoffs they turned to re-training and education. There have been a lot of companies that have tried to duplicate what Toyota is doing, and yet not one of those companies have been able to recreate a success level as high as Toyota. I believe this is due to the length of time Toyota has been in business and practicing these Lean principles. Lean does not happen overnight, it is a company lifestyle. By creating the Lean principles Toyota has held everyone within their company accountable for its success and raised the bars for its competitors to do the same. We live in the 21st century, our world, especially technology is ever changing. There is a constant demand to upgrade and excel at the new latest and greatest product. If you can’t keep up and adapt you will be consumed and fail! Toyota has proven the ability to do this and withstand the harsh demands of the world around them, all while putting their employees
- Bhattacharya, S. (2014). This has been also due to various manufacturers locally based which helped in the Indian Automotive achieve a position on a global rank and recognition globally as well. One of the major corporates to do so is Tata Motors. Their recent model the Nano launched in 2008 was launched with the perception of creating and manufacturing the worlds cheapest automobile and this was mainly due to the supply requirement by the vast amount of population being deprived of a motor vehicle. Originally a company for trucks and buses, Tata motors had entered the passenger vehicle segment in the 1998. Tata Engineering and Locomotive Company (renamed Tata Motors in 2003), which was primarily engaged in the production of commercial vehicles and utility vehicles till the mid-1990s, rolled out its small car “Indica’ in 1998. Indica was well received in the market and emerged as one of the prime competitors to MSIL. Gupta, V. (2009). But all the glory does come with criticism, as briefly said by S. B., Vikram, S., & D, S. G. (2011), according to the Draft automotive mission plan, issued by Government of India in September 2006, for the period 2006-2016, the industry not only needs to think big in terms of scales but also needs
Besser, T. L. (1996). Team Toyota: Transplanting the Toyota Culture to the Camry Plant in Kentucky. SUNY Press.
The nonmanufacturing companies can learn and apply from Toyota’s philosophy and practices as listed below:
• While making a methodology is challenging, executing it is considerably more troublesome. Numerous organizations comprehend Toyota Production System now, yet at the same time think that it is troublesome to execute and implement.
All employees of Toyota are satisfied with lower level needs, they make great wages, they have job stability, and the job sites are full of safety initiatives and well planned (Liker, 2004, p.210). Toyota also provides family benefits to help with raising children and the wellbeing and health while at work, with all these benefits employees are content and can focus on big picture ideas. Toyota promotes a strong team mood and a sense