Toyota Kirloskar to focus on exports to cushion rupee depreciation impact
Last Updated at
- 12:54 pm, May 28, 2012
The company has incurred losses worth Rs 60 crore in the last four months due to the diving rupee.
Toyota Kirloskar Motor is planning to expand its exports from India to partly offset the losses, which has now touched Rs 60 crore in the last four months due to the depreciation of the Indian rupee.
"The rupee fall is hitting us badly. To counter this, we are planning to increase our exports from the country. We will look for new markets," Toyota Kirloskar Motor deputy managing director, commercial, Mr Shekar Viswanathan said.
Toyota Kirloskar Motor, which is a joint venture between Japan's Toyota Motor and Kirloskar Group entered into the export market with the first consignment of its Etios series that were shipped to South Africa in April 2012. The company plans to export 20,000 units of the Etios twins per annum.
"These are all right-hand drive cars. We will look for such markets. We will have to check if these cars are suitable for selling in other markets as well," Viswanathan said without specifying other new markets. The company is currently ramping up the production of the Etios cars from the current annual capacity of 1.2 lakh units to 2.1 lakh units by early 2013.
When asked about the impact of the rupee depreciation, Viswanathan said, "For a fall of every rupee against dollar, we lose about Rs 90 crore on a yearly basis. In the last four months, we have lost an average of about Rs 15 crore every month, totaling to about Rs 60 crore."
He, however, said the company does not have any immediate plans to increase the prices of its cars.
The rupee has fallen over 13 per cent since early March due to a combination of deteriorating global risk sentiment and weak domestic fundamentals. Last week, rupee had touched an all-time low of 56.38 against the dollar. On Friday, the Indian currency gained 27 paise, rising for second day in a row, to close at 55.37 against the dollar after RBI intervened on currency breaching the 56-level in early trade.
First Published on 12:54 pm, May 28, 2012
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