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Corporate Strategy of Toyota Kirloskar Motors
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Corporate Strategy of Toyota Kirloskar Motors


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TKM is the Indian subsidiary of Toyota Motors Corporation Japan. Seminar report in MS Word format is attached.

TKM is the Indian subsidiary of Toyota Motors Corporation Japan. Seminar report in MS Word format is attached.

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  • 1. Mahendra Prabhu K 13HM16 MBA NITK 2013-15
  • 2. Introduction Industry: Automobile, Automotive parts and Textile machinery Facilities: 56 manufacturing plants across 6 continents Employs 333,716 people (consolidated) in 170 countries worldwide as of March 31, 2013 Toyota has become the largest vehicle manufacturer in Japan with over 40% market share Headquarters: Toyota, Aichi Prefecture, Tokyo Founder: Kiichiro Toyoda Founded: August 28, 1937 President and Representative of directors: Akio Toyoda 2013 sales: 9.98 million units Revenues 2013: USD 224.49 billion 2014 target: first to cross 10 million sales mark Biggest competitors: GM in USA and VW in China
  • 3. As reported on its consolidated financial statements, Toyota has 540 consolidated subsidiaries and 226 affiliates. Toyota Motor North America (100% – 2004) Toyota Canada Inc. (51% - 2013) Toyota Tsusho – Trading company for the Toyota Group Daihatsu Motor Company (51.2% – March 31, 2006) Hino Motors (50.1% – 2001) Lexus 100% (1989) Scion 100% (2003) DENSO (24.74% – September 30, 2006) Toyota Industries (23.51% – March 31, 2006) Aisin Seiki Co. (23.0% – September 30, 2006) Fuji Heavy Industries (16.66% – June 28, 2008) Isuzu Motors (5.9% – November 10, 2006) PT Toyota Astra Motor (49% – 2003) PT Toyota Motor Manufacturing Indonesia (95% – 2003) Aerospace Agriculture biotechnology Higher Education Financial services Philanthropy Robotics
  • 4. FORBES company Ranking #14 World's Most Valuable Brands #31 Global 2000 #9 in Sales #164 in Profit #81 in Assets #29 in Market value USD 169.12 billion
  • 5. Management Practices Toyota's management philosophy has evolved from the company's origins and has been reflected in the terms "Lean Manufacturing" and Just In Time Production, which it was instrumental in developing. Toyota's managerial values and business methods are known collectively as the Toyota Way. In April 2001, Toyota adopted the "Toyota Way 2001", an expression of values and conduct guidelines that all Toyota employees should embrace. Under the two headings of Respect for People and Continuous Improvement, Toyota summarizes its values and conduct guidelines with the following five principles: oChallenge oKaizen (improvement) oGenchi genbutsu (go and see) oRespect oTeamwork According to external observers, the Toyota Way has four components: Long-term thinking as a basis for management decisions A process for problem-solving Adding value to the organization by developing its people Recognizing that continuously solving root problems drives organizational learning The Toyota Way incorporates the Toyota Production System.
  • 6. Management Practices: TQM/six-sigma, Kanban, Jidohka, Just - in - time, lean production, Kaizen, Built QDR (2012),
  • 7. Income Statement 2013 2012 2011 2010 2009 Revenue $234,101.077 $225,847.135 $229,196.833 $204,443.097 $211,023.45 Gross Profit $36,320.12 $26,676.917 $28,699.694 $24,458.295 $21,316.282 Operating Income $14,014.622 $4,321.935 $5,650.723 $1,591.403 $-4,738.732 Net Income $10,208.549 $3,446.093 $4,925.544 $2,259.611 $-4,491.275 Diluted EPS $6.45 $2.19 $3.14 $1.44 $-2.86 Financial performance Source : TMC global website:
  • 8. TMC Global Mission Toyota will lead the way to the future of mobility, enriching lives around the world with the safest and most responsible ways of moving people. “Through our commitment to quality, constant innovation and respect for the planet, we aim to exceed expectations and be rewarded with a smile”. “We will meet our challenging goals by engaging the talent and passion of people who believe there is a always a better way”.
  • 9. TKM Vision 1. Delight our customers through innovative products, by utilising advanced technologies and services. 2. Ensure growth to become a major player in the Indian auto industry and contribute to the Indian economy by involving all stakeholders. 3. Become the most admired and respected company in India by following the Toyota Way. 4. Be a core company in global Toyota operations. Your satisfaction our commitments. Through these activities establish a superior brand.
  • 10. TKM Mission 1. Practise ethics and transparency in all our business operations. 2. Touch the hearts of our customers by providing products and services of superior quality at a competitive price. 3. Cultivate a lean and flexible business model throughout the value chain by continuous improvement. 4. Lead the Toyota global operations for the emerging mass market. 5. Create a challenging workplace which promotes a sense of pride, ownership, mutual trust and teamwork. 6. Create an eco-friendly company in harmony with nature and society. Your satisfaction our commitments. Through these activities establish a superior brand.
  • 11. HISTORY Kiichiro Toyoda had travelled to Europe and the United States in 1929 to investigate automobile production and had begun researching gasoline-powered engines in 1930. Toyoda Automatic Loom Works was encouraged to develop automobile production by the Japanese government, which needed domestic vehicle production, due to the war with China. In 1934, TMC produced its first Type A Engine, which was used in the first Model A1 passenger car in May 1935 and the G1 truck in August 1935. Production of the Model AA passenger car started in 1936. Early vehicles bear a striking resemblance to the Dodge Power Wagon and Chevrolet, with some parts actually interchanging with their American originals. Toyota Motor Corporation started in 1937 was spined off from Toyoda Automatic Loom Works. While the Toyota Group is now best known for its cars, they are still in the textile business as well. TMC still makes automatic looms, which are now computerized, and electric sewing machines which are available worldwide.
  • 12. Facts about TMC GM retook the sales crown in 2011, when Toyota's production was hurt by the earthquake and tsunami in northeastern Japan. Toyota sold 9.98 million vehicles during 2013, which was 270,000 more than its closest rival - US car giant General Motors. Sales were up 2% from the year before and Toyota also announced plans to sell 10.32 million vehicles in 2014. Competitors GM in USA and VW in China GM sold 9.71 million vehicles, which was a four percent year-on-year gain, while Volkswagen was up almost five percent at 9.5 million TMC underwent a massive recall debacle in the US, announcing recall after recall starting in 2009. It paid $1.2bn this year to settle a Justice Department investigation into charges of covering up problems that caused unintended acceleration in some cars.
  • 13. The Corolla is the company’s bestselling nameplate for automobiles across the globe. The total number of nameplates that have been sold to date is 30 million. In the year 2011, Toyota was ranked as the third largest car manufacturer in the world, after General Motors and Volkswagen Group. Over eighty percent of the Toyota cars that were sold even 20 years ago are still functional and on the road. In 2012, eight Toyota-manufactured cars won the J.D Power and Associates Vehicle Dependability Study. Toyota has filed 1000 new patents for the Prius which was manufactured by the company in 2012. That goes to show how much new technology has been used in the making of the car. Toyota is present in India through a joint venture with Pune based Kirloskar motors. Toyota Kirloskar Motor Private Limited is a subsidiary of Toyota Motor Corporation of Japan, for the manufacture and sales of Toyota cars in India. TKM is currently the 4th largest car maker in India after Maruti Suzuki, Hyundai and Mahindra. It crossed the 1 million car sales milestone in India during March 2014. TKM CEO: Hiroshi Nakagawa TKM Founded: October 6, 1997 TKM Headoffice: Bangalore-Karnataka
  • 14. Research and Development Every year, Toyota spends over $9 billion on research and development towards the future automobile technologies. Nine billion dollars per year means more than one million dollars an hour, which is more than any company in the world spends on research and development. First Country to Import Toyota Australia was the first country in the world to import Toyota Corolla from Japan in November 1966, which was just a month after the vehicle was launched in Japan. After that, Australia started manufacturing Corolla from 1968 until 1999. Even now, it is the most in-demand automobile in the country. In fact, one out of every five vehicles sold in the country is a Corolla. Most Ethical Multinational Corporation It has been four consecutive years since the Covalence Ethical Ranking has been declaring Toyota to be the most highly ranked ethical corporation in the world. Their rankings are based on data about product social utility, waste management, human rights policy and labor standards.
  • 15. Local Manufacturing Since 1957, Toyota has expanded the scope of its sales across the entire world. In almost 50 years, Toyota has managed to set up production bases and showrooms in over 170 countries and regions all over the globe. Even McDonalds doesn’t have as many restaurants worldwide! Because of Toyota’s successful policy of “producing vehicles where the demand exists,” there are more than 50 production bases in over 25 countries and regions including Australia. Leading Manufacturer of Hybrid Toyota has the largest hybrid model line-up in the world. The famous Toyota Prius, launched in 1997 as the first mass produced hybrid vehicle, has reached its target of 1 million unit sales each year, as of 2012.
  • 16. 1. Safety – Toyota is regularly best in class when it comes to safety. In 2012, Toyota had ten vehicles that received the IIHS Top Safety Pick Award. New Toyota models also feature the Star Safety System, which includes lots of great safety features that come standard on all vehicles. 2. Resale Value – Toyota regularly tops the list for Kelley Blue Book resale value. In 2012, Toyota and Lexus won the Best Resale Value Award at the Los Angles Auto Show. They really hold their value when you use genuine parts such as Toyota Sienna parts. 3. Maintenance – Toyotas are durable, long-lasting vehicles. Eighty percent of Toyotas sold 20 years ago are still on the road today. Toyotas last a long time, especially when you use genuine Toyota parts. 4. Invest in America – Toyotas are made right here in the United States. Toyota has created more than 350,000 jobs in this country and have invested more than $18 billion in the United States. 5. Technology – When you buy a Toyota, you’re getting some of the latest technology in your vehicle. Toyota’s Entune system allows you to connect to popular mobile apps right to your Toyota. 5 Five reasons to buy Toyota
  • 17. Toyota Kirloskar Motor Private Limited is a subsidiary of Toyota Motor Corporation of Japan (with Kirloskar Group as a minority owner), for the manufacture and sales of Toyota cars in India. It is currently the 4th largest car maker in India after Maruti Suzuki, Hyundai, and Mahindra. Type Joint venture Industry Automotive Founded 6 October 1997 Headquarters Bangalore, Karnataka Key people Mr. Ryoichi Sasaki, Chairman Products Automobiles Employees 4,975 Parent Toyota Motor Corporation, Kirloskar Group Subsidiaries Toyota Kirloskar Auto Parts Private Limited Website
  • 18. TKMPL's current plant at Bidadi, Karnataka is spread across 432 acres and has a capacity of 80,000 vehicles per annum. TKMPL's second manufacturing plant on the outskirts of Bangalore, Karnataka has a capacity of 70,000 vehicles per annum. 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.
  • 19. Toyota Product line in India Manufactured/Assembled locally Toyota Corolla (launched 2003) Toyota Innova (launched 2005) Toyota Etios (launched 2010) Toyota Etios Liva (launched 2011) Toyota Fortuner (launched 2009) Toyota Camry (launched 2002) Imported Toyota Land Cruiser Prado (launched 2004) Toyota Land Cruiser (launched 2009) Toyota Prius (launched 2010) Discontinued Toyota Qualis (1999-2004)
  • 20. Industry Academic Relations To ensure that only the highest level of automotive professionals work on Toyota vehicles, Toyota has partnered with industrial and technical training institutes all across India to create the Toyota Technical Education Program (T-TEP). Over 3000 students from these institutes have benefited from this Program so far, with over 600 students undergoing training on the latest automotive technology and service techniques every year. The curriculum of this Program includes on-the-job training at Toyota dealerships.
  • 21. TKM in Media: Latest News Milestone: TKM sales in India cross 1million mark on March 2014. New Launch: TKM showcased the new 2014 Corolla Altis at the Auto Expo 2014 in January at New Delhi. The new 2014 Toyota Corolla Altis India is scheduled to launch by May this year. TKM may also launch the new Etios Cross. Industrial relations: Lock-out at 2 Toyota Kirloskar Plants located at Bidadi outskirts of Bangalore during March 2014. Dispute between Management and workers Union over salary hike demands led to mass strike.
  • 22. CNBC TV 18 Overdrive Awards: Category - Executive Car Of The Year ET Zigwheels Awards: Category - Innovation Of The Year Award Autobild Golden Steering Wheel Awards: Category - Green Steering Wheel Car India Awards: Category - Green Car Of The Year Awards 2014 TKM