Toyota disclosed an impressive sales figure of selling more than 10 million vehicles in 2015.
Japan’s automobile business, Toyota, reported an enormous consolidated sale of 10.15 million vehicles in 2015. The Tokyo-based organization plans to take full control of same country’s small car manufacturer ‘Daihatsu Motor’, the company currently holds its 51.2% shares.
The world’s top car manufacturer suggests that in the highly competitive industry, the buy-out of Daihatsu will support it to emerge strongly in the market. The likely venture will avoid design duplicity and work in the establishment of strong product lineup. In seven out of the past eight years, the Japanese organization remained at top beating the giants like General Motors and Volkswagen AG. It was only in 2011 after the catastrophic earthquake that it fell short and lost its no. 1 position.
Toyota also has business partnerships with few of Japan’s car manufacturer including Subaru parent ‘Fuji Heavy Industries’, ‘Mazda Motor’, and truck maker ‘Isuzu Motors’. The likely buy-out of Daihatsu escalated its share by 20% while a rumored tie-up with Suzuki raised its share by 11%.
For a long time, rumors are soaring high that the world’s leading automobile company is interested in joining hands with Japan’s another company – or fourth biggest – automobile company ‘Suzuki Motor’ in order to pave its way in India. Source privy to the matter said that earlier, both the companies had talks regarding fuel saving, safety-technologies, and operations in India. Suzuki has strong hold in Indian market and its capital ties with the excellent organization will be highly profitable but both the companies waived off such rumors.
Many automobile manufacturers have been following the similar traits as Toyota for instance, Nissan, VW, and Renault use Datsun, Skoda, and Dacia as their respective low-cost products. Moreover, few analysts vote for Toyota-Suzuki partnership. Suzuki has vast distribution network in India and Toyota could reap significantly high benefits from Indian market where it has a share of only 5%. The partnership will likely be advantageous to both companies.
In the competitive industry, Toyota has to make prudent choice of either going for the partnership or the full control. It could not be benefitted from both options as Daihatsu and Suzuki are fierce rivals – both are dedicated to manufacture 660cc small sized vehicles. The mini-vehicles have been the eye-candy of budget conscious consumers.
Also, earlier in 2010, when Asian organization joined hands with Volkswagen, it couldn’t keep their cordial business relationship for a long time. The partnership turned bitter and the disputes led the giving up of cross shareholdings.
Toyota Motor stock stood at $114.35 going up by 3% market close on Tuesday. If it goes for the take-over of Daihatsu, the buy-out will help the titan to win over the customers in the market and expand its business largely.
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