In a strategic move, Japanese automaker Toyota Motor Corporation (TMC) has unveiled a regional restructuring plan that integrates India into its ‘Middle East, East Asia & Oceania Region,’ designating the country as the central hub for the new geography. As part of this transformation, Masakazu Yoshimura, the Managing Director and CEO of Toyota Kirloskar Motor (TKM), a joint venture between Toyota and the Kirloskar group in India, will concurrently serve as the Regional CEO.
The announcement signifies a significant shift in Toyota’s regional operations, emphasizing India’s growing importance in the global business landscape. The realignment will be effective from January 1, 2024, marking India’s enhanced role in the Middle East, East Asia & Oceania Region. TMC highlighted that India has already enjoyed high priority as part of the Asia Region, and this change will further elevate its significance. The move reflects the increasing potential of the Indian market, driven by its dynamic and skilled workforce.
Masakazu Yoshimura, with nearly 30 years of diverse experience in the automotive industry, has previously worked in countries such as Japan, China, and South Africa. His expertise spans product planning, pricing, sales, and marketing. Appointed as MD and CEO of TKM in 2019, Yoshimura has played a crucial role in the successful launch of various products, including hybrid electric vehicle variants like the Urban Cruiser Hyryder and the Innova Hycross, as well as the Hilux.
The restructuring aligns with Toyota’s broader vision to streamline its regional operations and optimize its business strategy. By designating India as a key hub, Toyota aims to leverage the country’s strategic location and economic potential to drive growth in the Middle East, East Asia & Oceania Region. India’s elevation to a central hub underscores the country’s pivotal role in Toyota’s global plans. The decision is underpinned by India’s status as a high-priority market and the recognition of its vibrant workforce, reflecting the country’s emergence as a key player in the automotive industry.
In addition to the regional restructuring, Toyota Kirloskar Motor, the Indian subsidiary, recently announced fresh investments of Rs 3,300 crore for a new plant slated to be operational by 2026. The facility is expected to have an annual production capacity of 1 lakh units and generate around 2,000 additional jobs, reinforcing Toyota’s commitment to the Indian market. Furthermore, in 2022, Toyota, along with its Indian entities TKM and Toyota Kirloskar Auto Parts (TKAP), signed a Memorandum of Understanding (MOU) with the Karnataka government to invest Rs 4,100 crore. The investment is geared towards enhancing electrification, accelerating the shift towards greener technologies, and contributing to substantial reductions in CO2 emissions.
The comprehensive approach to investment and strategic restructuring underscores Toyota’s long-term commitment to India and its vision of fostering sustainable, innovative, and growth-oriented operations in the region. The realignment positions India as a key player in Toyota’s global network, emphasizing the country’s strategic significance and potential in the evolving automotive landscape.
