toyota: Toyota posts first loss in 5 years on slow sales
This was the third consecutive year when the local unit of Japan‘s Toyota Motor recorded a lower bottom line on year, even as it rejigged business plans that include cross-badging vehicles with Maruti Suzuki in India.
posted a net loss of ₹55 crore for the year ended March 31, compared with a net profit of ₹187 crore the year before, according to the company’s filing with the Ministry of Corporate Affairs, shared with ET by business research platform Tofler. Revenue dropped 16% to ₹13,181 crore.
The fall in sales, elevated fixed cost and lower margin on the products sourced from Maruti Suzuki weighed on the operating margin, which shrank to 1.97% from an average of 7.13% for the previous four years. Operating profit per car dropped to ₹27,832, which was 25% less compared with that of local market leader Maruti Suzuki.
At its peak, Toyota Kirloskar’s profit per vehicle was ₹1.39 lakh, in FY17. That was nearly double that of Maruti Suzuki at the time.