Toyota Motor Corporation în Two Wheelers Indian Market

INTRODUCTION

The team selected Toyota Motor Corporation as the company that consultancy is being offered to. The Team suggested that Toyota produce two wheeler vehicles for the Indian Market.

Toyota Motor Corporation is a multinational automobile company that has it headquarters in Toyota, Aichi, Japan. It is one of the largest automobile manufacturing companies in the world. Toyota produces mostly four wheeler vehicles. The company’s set of philosophies and principles that underlie managerial behavior and production system is consists of principles in two key areas: continuous improvement, and respect for people. The principles for a continuous improvement include establishing a long-term vision, working on challenges, continual innovation, and going to the source of the issue or problem. The principles relating to respect for people include ways of building respect and teamwork. The team suggestion is base on the philosophies of the Company.

THE PRODUCT

The product is a two wheeler vehicle (motor cycle) see appendix one for picture and details of the product. Toyota produces concept vehicles and based on the ideas of concept vehicle the company will be able to produce two wheeler vehicles. The two wheeler vehicle should be an automatic vehicle and manual one. The product appeal is for both male and female. The product should also have appeal for the youth and women and adult male. Female riders will like automatic motorcycles for ease of driving and maneuvering in traffic. Two wheeler vehicles have tremendous advantage over four wheeler vehicles due to its speed and affordability. Toyota is known for making affordable and reliable cars with a brand name that sells. The use of two wheelers is catching up with the youth and college students sometimes due to the idea of going green.

Toyota can produce the standard motorcycle and the automatic motorcycle (scooter), which both are highly consume by the Indian market. The product can be classified as consumer goods and the production base is mass production. We proposed that Toyota come in to this market with the standard motorcycle and place the product in the middle-income market not as the premium product. The scooter specifications at least need to meet the specification from their direct competitor’s (Honda) products. The table below shows several type of Honda’s scooter specification which already available in Indian market:

TOYOTA TWO WHEELERS IN INDIA INDUSTRY ANALYSIS

As of 2011, India is the second most populous country in the world. Additionally its vast physical size in combination with its large population creates a great need for reliable forms of transportation. Currently the most popular form of transportation is public transportation, specifically the railway, but the countries supply of public transportations can’t meet the publics’ demands. The next most common form of transportation in the country is two wheel vehicles, and fortunately for Toyota there is plenty of room to enter, expand and earn a large share in the market.

According to AutomobileIndia.com there were 47.5 million two wheelers in 2003, and by 2010 sales were expected to exceed 10 million dollars annually. Additionally the popularity of motorbikes in India is influenced by their long history of usage by the government and current portrayals in Indian films. Motorbikes are seen as a more popular alternative to cars because they are much cheaper yet reliable form of transportation compared to cars. Moreover, Auto guide claims 4 stroke motorbikes are more popularly because they are more fuel efficient. Other factors that enhance the potential of motorbikes include the increase of population, incomes and commute distances.