Toyota Kirloskar Motors has changed the marketing strategy for its Innova models. The company, which used to target only the high-end car customers (Rs 500,000 plus category) for its Innova models will, going forward, maximise attention on passenger car segment.
"We would be seriously eyeing the passenger car segment, like the customers of Maruti and Hyundai," said KK Swamy, deputy managing director, Toyota Kirloskar Motors.
It is the lack of correct marketing focus, which slumped monthly Innova sales to 2,500 units from the 4,500 level in June 2005, he said.
In an effort to tap the passenger car segment, TKM came up with consumer finance scheme in December 2005 for a month, which offered zero down payment, low interest rate or a lower EMI of Rs 11,999 to them. Only the low end models like G1 and G2 were included in the scheme.
The scheme was so successful that it improved Innova's sales back to the 4,500 level. "We are out of stock of G1 and G2 models," said Swamy.
Encouraged by the scheme, the company is planning to extend the scheme by another three months, said senior officials in TKM. The company is also planning to introduce high end Innova models like the G3 and V into the scheme.
Nevertheless, despite December's performance, TKM has not been able to meet its sales projections for the year, which remained at 33,000 against a projection of 45,000.
Toyota Innova is a three-row passenger car combining the features of a Sports Utility Vehicle. The variant was launched in early 2005. Innova is available in petrol and diesel versions.
G1 is priced in the range of Rs 705,000-Rs 760,000 (ex-factory Mumbai). G2 is priced between Rs 749,000 and Rs 897,000. High end models, G3 is priced between Rs 828,000 and Rs 888,000 and V between Rs 928.000 and 980,000.
In December, Toyota Innova commanded a market share of 40 per cent in the multi-utility vehicle segment. The models share in 2005 was 34 per cent.
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