Toyota posts first loss in 5 years on slow sales

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Toyota Kirloskar Motor experienced its fiscal year 2021 as the makers of Innova and Fortuner sold fewer vehicles in the pandemic-hit year which saw cost escalation. read the description:

New Delhi: Toyota Kirloskar Motor experienced its fiscal year 2021, as the makers of Innova and Fortuner sold fewer vehicles in the pandemic-hit year, which saw cost escalation.

This was the third consecutive year for the local unit of Japan’s Toyota Motor to register a bottom line in the year, even as it resumed business plans involving cross-bagging vehicles with Maruti Suzuki in India. did.

Toyota Kirloskar reported a net loss of Rs 55 crore for the year ended March 31, as against a net profit of Rs 187 crore a year ago, according to the company’s filing with the corporate affairs ministry. . Revenue fell 16% to Rs 13,181 crore.

Declining sales, higher fixed costs and lower margins on products procured from Maruti Suzuki weighed on operating margins, which declined to 1.97% from the last four years’ average of 7.13%. Operating profit per car declined to Rs 27,832, which was 25% lower than that of local market leader Maruti Suzuki.

First published:October 21, 2021, 6:39 pm

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