Toyota Motor Corporations over $2-billion trading division, Toyota Tsusho, is considering investing in Toyota dealerships pan-India in joint venture with local investors. Toyota dealerships are considered among the most profitable in the countrys car business.
For several years now, Tsusho has owned a dealership in Mumbai, Lakozy Toyota, which has been inexistence even before Toyota set up Toyota Kirloskar Motor (TKM), its JV Company with the Kirloskar. Lakozy used to import Toyota cars and stock spares, and offer after-sales service etc. While more details are not available, trade sources said Toyota Tsusho officials have been in touch with potential investors for opening dealerships in India. It is assumed that the initial footprint will tap the larger source markets for Toyota cars.
There are already 49 TKM dealerships in India, where the company has no stake, and the number is proposed to be ramped up to 60 this calendar year. While there is Toyotas exposure to it, Ravindu Toyota, the Bangalore-based dealership, is owned by Vijay Kirloskar, uncle of Vikram Kirloskar, vice-chairman of TKM. Vijay Kirloskar runs Kirloskar Electric. Since Toyota dealerships are triple S facilities (sales, spares, service), the facilities tend to be larger in size I than outlets of many other brands. The investment, accordingly, is also relatively larger (Rs 5- 7 crore excluding land cost), although returns are said to be equally attractive.