On Wednesday, May 30th, Toyota Financial Services began to offer loans to Indian consumers to help them buy the company’s sport-utility vehicles and cars.
Toyota will make an initial investment of INR2.6 billion ($46.37 million) in Toyota Financial Services India, but will later on increase the investment as the company expands operations. Toyota Financial Services India will begin offering loans in Bangalore and then in New Delhi, expanding its business in a phased manner.
As part of its global strategy to increase sales in emerging markets, Toyota plans to develop 6 subcompact cars in the next four years. Currently Toyota sells cars in India through a JV, Toyota Kirloskar Motor with India’s Kirloskar Group. TKM also declared that it will increase the vehicles’ price by 2% in the following days to offset the impact of rupee depreciation.
Hiroshi Nakagawa, managing director, Toyota Kirloskar Motor (TKM), said, “Globally, we have outlined a strategy to launch eight subcompacts in emerging markets by 2015. Two cars on the Etios platform have already been introduced. India is an important market. We will launch more small cars in the country.”