New Delhi: Toyota Kirloskar Motor Pvt. Ltd, the India joint venture of Japanese auto giant Toyota Motor Corp., has emerged as a major dividend engine for the two partners, with payouts soaring to ₹5,652 crore in fiscal year 2026 from ₹87 crore five years ago.
Dividend per equity share rose to ₹81 in FY26, from ₹1.26 in FY21. The respective payouts were based on earnings for FY25 and FY20.
Toyota, the world’s largest carmaker by sales, which owns 89% of Toyota Kirloskar Motor Pvt Ltd, gets the bulk of these dividends, according to the filings reviewed by Mint. Manasi Tata-led Kirloskar Group holds 11%.
The surge shows how Toyota’s India business has become a significant cash generator for its Japanese parent, even as the automaker steps up investments in the country. The development comes as global carmakers turn increasingly bullish on India amid challenges in markets such as North America, Europe and China.
The dividends come in addition to royalty payments to Toyota, which have surged from ₹337 crore in FY21 to ₹2,112 crore in FY26. Put together dividend and royalty payments, the Japanese parent received over ₹7,000 crore from the Indian operations during the last fiscal.
The ₹5,652 crore dividend from the Fortuner maker is higher than ₹4,244 crore paid by the country's largest carmaker Maruti Suzuki and ₹1706 crore doled out by Hyundai Motor India, the publicly listed India units of Japanese Suzuki Group and Korean Hyundai Motor Group, during FY26.
“TKM (Toyota Kirloskar Motor) remains fully committed to India and continues to invest in strengthening its manufacturing capabilities, products, and people while contributing to society through technology, eco-systems at large and broader operations,” a company spokesperson said.
“Dividends paid to shareholders depend on various factors, including net profit after tax (PAT) of a financial year (FY), future capex plans, business requirements and regulatory compliance. These factors can vary from year to year,” the spokesperson added.
The payouts are based on the company's earnings during FY25, when Toyota Kirloskar reported a profit of ₹5,672 crore. Toyota’s India business has swung from a ₹55 crore loss in FY21 to around ₹5,225 crore profit in FY26. While revenue grew 9% to ₹70,578 crore, net profit declined 8% owing to higher cost.
No dividend has been paid to shareholders in the financial year 2027 based on the earnings of FY26.
Investment cycle
The rise in dividends and royalty payments comes as Toyota begins a new investment cycle in India. In May, the Japanese firm announced plans to build a third manufacturing plant in Maharashtra with annual capacity of 100,000 vehicles, taking its total India capacity to 450,000 units by 2029. Toyota did not disclose the investment size.
Toyota Kirlosokar in May said it "will continue strengthening its production structure to enable flexible response to future demand growth and market changes in India and surrounding regions, and to deliver products in a timely manner that customers choose.”
The carmaker sells a range of SUVs in India, which include Innova HyCross, Innova Crysta, and Fortuner.
Toyota also has an agreement with Maruti Suzuki in the Indian market to sell rebadged versions of Maruti Fronx, Baleno, Ertiga and eVitara. These vehicles are manufactured by Maruti Suzuki but are also sold by Toyota.
Experts suggest a turning point for Toyota has been its model-sharing partnership with Maruti Suzuki, which has helped boost its profitability.
“Suzuki partnership has helped the company. Models like Hycorss and Hyryder both have been hits. There is scope of more new products in the sedan and mini-SUV space,” Subhabrata Sengupta, partner at Avalon Consulting, said.
Japanese counterpart Suzuki, via its India unit, is set to invest ₹77,500 crore till FY31, while Hyundai also announced a ₹45,000 crore investment in India till FY30, with both carmakers lining up dozens of launches. European manufacturers like Renault and Volkswagen have also lined up launches in the Indian market to capture growth.
In FY26, passenger vehicle sales grew 8% to 4.6 million, according to data from Society of Indian Automobile Manufacturers (Siam). Toyota’s sales in India grew 19% to 366,896 units in the year.