New Delhi: Toyota Kirloskar Motor Pvt. Ltd (TKM) said on Monday it expects a 60% jump in revenue for the fiscal year to Rs7,000 crore, but lower profit.
The strong demand for the Fortuner sports utility vehicle would be the biggest driver of revenue, Vikram Kirloskar, vice-chairman, TKM, said on the sidelines of the World Economic Forum’s India Economic Summit in New Delhi on Monday.
In 2009-10, the company posted a turnover of around Rs4,000 crore and profit of Rs300-400 crore.
The Indian subsidiary of the Japanese auto maker will launch the Etios on 1 December, initially as an entry-level sedan followed by a hatchback version. Both the versions of the Etios will be expected to sell around 70,000 units a year, Kirloskar said.
“This fiscal, our profitability is expected to drop due to the higher start-up costs of the new plant and higher depreciation on manufacturing a larger number of the Fortuner SUV,” he said.
Ahead of its entry into the small car mass segment in the next few months, TKM has invested Rs3,500 crore in its second plant in Bangalore and on developing the Etios.
The small-car market has become increasingly competitive with a series of launches in the past few months, including the Volkswagen Polo, the Chevrolet Beat and the Ford Figo.
The space will get more cluttered with the scheduled launch of a small car from Honda Motor Co. Ltd, apart from the Etios.
Mint reported in May that all the 70,000 units of the Etios to be produced in 2011 will be sold in India, while exports will start from 2012.