Toyota Fortuner is a victor holding its ground firmly Toyota to launch China-made Corolla, Levin hybrids in 2015 Toyota Fortuner versus 2014 Renault Koleos – Posh SUV’s built with innovative technologies The new innovative Atkinson cycle engine engineered by Toyota All new 2014 Toyota Corolla Altis launching in May Toyota throws design challenge to Hyundai with new Camry Toyota confirms fuel cell sedan launch next year Toyota likely to experience slower growth Toyota’s frumpy Camry gets a New York make-over Toyota Kirloskar India pulls out of small car segment, shifts focus on bigger cars


Toyota Fortuner is a victor holding its ground firmly

The Toyota Fortuner is one of those rare vehicles that have managed to hold on to its undisputed leading position for long, despite a strong competition. Most of the leading cars lose their enjoyed to spot after newer and more powerful car rivals emerge to eclipse the former’s fame. However, the Toyota Fortuner has been one of those rare victors that have kept its strong footing even against fierce rivalry.

2012 2013 Toyota Fortuner

According to the recent reports, a yet new rival is in the making for the Fortuner, as Tata Motors owned JLR is planning to build a premium SUV on the platform of the latest generation Freelander 2. Nevertheless, the Land Rover Freelander based SUV will most probably also get to feel that the Fortuner is an extremely hard nut to crack.

The Toyota Fortuner has been the all time favorite of the Indian biggies such as politicians, actors and business tycoons. The world’s largest car maker, Toyota had introduced the Fortuner back in 2009. Ever since, the premium SUV never looked back. Constantly outshining its arch rivals, the Fortuner now enjoys the lion’s share of the premium SUV segment in India.

The Toyota Fortuner is priced between the ranges of Rs. 21.72 and Rs. 23.32 lakhs (ex-showroom, Mumbai), is certainly a vehicle that the commoners can’t afford. Given its premium build, it is one of the most expensive models in its own segment which comprises of the Honda CRV, Hyundai Santa Fe, Mahindra Ssangyong Rexton, Ford Endeavour, Chevrolet Captiva, Maruti Suzuki Grand Vitara, Mitsubishi Pajero and the Renault Koleos.

In the last financial year that ended in March 2014, the Toyota Fortuner remained the undisputed leader of the segment with a massive 72 percent share accounted to the sales of 16,551 units.

The grueling market slowdown of the Indian auto industry has taken a bad toll on the expensive premium SUV market that declined by 7 percent to just 23,031 units in the last year, as compared against the previous 24,726 units. Thus very naturally all the premium SUV models posted a decline in sales last year excepting the Toyota Fortuner, Honda CRV and the Mahindra Ssangyong Rexton. And the Toyota Fortuner has only gained on more market shares in the segment with the passing years, clearly showing its growing popularity.

The legendary Land Cruiser has certainly made Toyota create the impression of a tough SUV maker on the consumers. This reputation was further enhanced by the incredibly successful Qualis. The Fortuner, which is based on the grand appeal of the Land Cruiser along with an affordable tag unlike the Land Cruiser that costs a bomb, thus became an instant blockbuster.

The Fortuner is also among those rare cars that made their makers halt registering booking because of overwhelming demand. The Fortuner still has a long queue of tough rivalry ahead primarily from the premium car makers. Apart from JLR, Mercedes-Benz has plans to launch the GLA-Class in the segment.

Hope that the extremely capable and tough Toyota Fortuner still continues to be the premium SUV king.

Toyota to launch China-made Corolla, Levin hybrids in 2015

Japanese carmaker Toyota which has more than 60 production units across the world will be producing hybrid versions of its internationally famous Corolla and Levin sedans at China. The cars which are manufactured at Toyota’s unit in China will be fitted with components developed at local unit itself and will be among first range of cars with gas electric hybrid engines to be made outside Japan. The firm is facing difficulties in fulfilling demands of hybrid cars in United States and Europe due to season calamites in Japan which have upset production schedules therefore has set up this alternative unit in China. Besides Toyota, several other local and international level automakers are receiving increased demand for hybrid cars from China therefore are setting up sales offices to sell these cars in local markets as the country is increasingly feeling after effects of pollution from exhausts of fossil fuels.

corolla altis with VVTI badge-1.

Even though Toyota manufactures Prius and Camry hybrid models in China, its ancillary spares and other components are imported from Japan along with hybrid engines making it difficult for the manufacturer to make more cars as import tariffs are very high.

To avoid these issues with Corolla and Levin cars, Toyota decided to make spares, batteries, transaxles, inverters etc at China itself. According to Toyota’s spokesperson the carmaker is aiming to sell around 2 million cars every year in China itself followed by exports to nations around the world irrespective of geographical location. The carmaker which has been world leader in passenger car sales for past couple of years after defeating old rivals General Motors and Volkswagen is keen on continuing this trend for current financial year also despite setbacks suffered this year.

Besides the above two closest competitors, Toyota’s models are facing competition from local brands like Honda and Nissan followed by Hyundai which are top selling brands in China. To become China’s third largest carmaker within next couple of years Toyota has to make drastic changes in its sales activities and product range which will make a sizeable impact on Chinese psyche. To achieve its cherished goal, Toyota will be introducing around 15 new models by end of 2017 to increase its portfolio and reach in China’s local markets. Presently sales in China account for 10 percent of Toyota’s sales across the world, which it is aiming to increase by 10-15 percent on an annual basis.

During financial year of 2013 Toyota was able to sell around 917000 cars in China which showed an increase of nearly 9 percent since previous year of 2012. The previous year had been tough for Toyota as there was an ongoing diplomatic tiff between China and Toyota leading to acts of looting and arson targeted at Japanese businesses in China therefore the brand managed to secure only 5 percent of total market share in 2012. The sales of hybrid cars in China is increasing at a rapid pace accounting for sales of 20400 units in 2013 which is more than double of 7900 units in 2012. At this rate Toyota’s target of selling 2 million units in China seems quite achievable within next few years.

Toyota Fortuner versus 2014 Renault Koleos – Posh SUV’s built with innovative technologies

Toyota Fortuner is rightly called the king of sport utility vehicles and moves on potent turbo diesel 3 liter engine that yields 171PS, and is sold in four wheel drive and two wheel drive models. The automatic car is sold in two wheel drive make only. Renault Koleos is inserted with diesel turbocharged 2 liter engine that pumps out 173PS and 23PS.

2012 2013 Toyota Fortuner

The 4×4 drive system in Fortuner is extremely efficient, and the engineering principle behind it is it supplies power to all four wheels. Koleos on the other hand does not constantly supply power to four wheels, and does so only on driving conditions.


Fortuner is not only a passenger vehicle, but used to transport army personnel’s as well. The car is packed with safety and ABS comes as standard on all variants and the MT 4×4 Fortuner is inserted with Brake Assist and EBD and is the only car to have the vehicle stability control feature. The other features to look forward to are rear camera, keyless entry, touch screen entertainment, premium leather seats, and height adjustable driver’s seat. All these attributes are found on all variants. The cruise control feature is available on two wheel drive version only.

Renault Koleos India

The most loaded 4×2 Koleos is filled with fun and convenient features such as world class music system with Bluetooth, aux-in and USB connectivity, cruise control, dusk sensing headlights, rain sensing wipers, and stop or start button. The safety features are passenger airbags and driver airbags, EBD and ABS. The seats are draped with premium fabric upholstery, and the safety features are world class, which are six airbags, hill descent control, hill start assist, and electronic stability program. The features found in base version are cruise control, audio system, EBD, ABS, vehicle stability control and six airbags.


Toyota Fortuner is 4.7 meters long, 1.85 meter tall and 1.84 meters wide and the wheelbase dimension is 2.75 meters. Koleos is 4.52 meters long, 1.7 meters tall and 1.85 meters wide.


Toyota Fortuner costs Rs 21.8 to 23 lakhs and Renault Koleos is priced at Rs 21.29 to 24.97 lakhs.

Toyota Fortuner and Renault Koleos are equally powerful in terms of engine power. Fortuner is however a more reliable car in terms of engine because of the 4×4 drive system supplies power to all four wheels, which enables greater maneuverability and Koles is efficient in terms of power transmission to all four wheels only on driving terrains.

Fortuner looks grand from the outside and inside and is packed with advanced safety features, but in terms of luxury, the car is not on par with Koloes which is tailored with fine fabric upholstery. Koleos also has rain sensing wipers, absent in Fortuner. The high end price of Koleos is costlier than Fortuner, but a significant margin. The lower end cost of Fortuner is pricier than Koleos.

The two cars are equally worthy purchases, but Fortuner is a better buy to experience a ride of efficiency and comfort. The power emission to all four wheels by 4×4 drive system is a reflection of advanced engineering power.

The new innovative Atkinson cycle engine engineered by Toyota

Auto engine engineering technology has moved leaps and bounds, and the trigger is the change in lifestyle caused by rapid industrialization. Cars are priced possessions all over the world, and the first view of attraction is the design, but customers today are choosy about the cars they pick, because everyone wants a fuel efficient car. Toyota is a legendary Japan based auto firm, and has brought in advanced style and technology. The company has lately developed the Atkinson Cycle Engine.

Toyota Logo

Toyota’s latest Atkinson cycle creation will be engineered in 1.3 liter and 1 liter engines. The two engines might not generate oodles of torque, but Atkinson cycle engine is developed to improve the thermodynamic effect of the car. The engine will render higher compression ratios, lower friction and weight, and enhanced combustion. All these factors will improve the fuel efficiency value of cars.

Toyota has worked on the development of Atkinson engine earlier, and it was also used in Prius hybrid, an innovative creation of Toyota. The company will use the engine for the first time at stand alone power plant. Stand alone power plant also called remote area power supply is off grid electricity system that does not have the electricity distribution system.

The new Atkinson’s engine is tailored with new theories which are inserted with Variable Valve Timing Intelligent Electric technology, plastic coated bearings, and chilled exhaust gas recirculation system, idle stop function, and restructured intake port. The new engine will move on 1 liter capacity and will move on 78mpg mileage. Toyota is keen to insert the new Atkinson engine into its RC F Lexus 1.3 liter model, and sources state that the engine might not retain the same efficiency, and might and will render lower mileage figures. Toyota has stated that the bigger Atkinson engine is the best in the world.

The new engine will be inserted in fourteen vehicles by 2015, and customers can enjoy world class mileages in a string of new models. The 1 liter Atkinson engine has the power to maneuver on the most challenging terrains, and can even push vehicles on steep slopes.

Toyota has injected innovative technologies into its new Atkinson’s engine, and a majority of new theories lies in the area of thermodynamics and not enhanced torque values. The innovativeness lies in higher compression ratios and lower friction and weight, which is essential for a secure ride encounter and a lower friction engine, is difficult to obtain, when it moves on higher combustion.

The company will insert its new Atkinson cycle engine in twelve models by 2015, and is a new chapter into a new segment in world class fuel efficiency. Toyota has explored new technologies to the core with the launch of Prius and Camry hybrids, and now the Atkinson cycle engine, that will render best-in-class fuel efficiency.

To provide a detailed summary on how the Atkinson cycle engine works:

The 1.3 liter gasoline Atkinson cycle engine will increase the expansion ratio and lower residual heat via a high compression ratio of 13.5. This process renders increased thermal efficiency. Toyota is keen to improvise on this technology, through other innovative methods with the fitment of intake port, with a new design that emits robust tumble flow, where air mixture flows in vertical swirl direction. Inside the cylinder is the Variable Valve Timing Intelligent electric technology to reduce loss and enhance combustion.

The new Toyota Quantum is among the most practical and fun cars to drive

Toyota has a knack for manufacturing cozy big family cars, few classic examples are Fortuner and Sienna, and now the company has introduced a new updated Quantum. The South African subsidiary of the firm has introduced an improved and new version of Quantum.

Toyota Quantum

Quantum looks like a perfect recreation vehicle, highlighted by its enormous size and interior room. The car is sold in three styles, which is a bus, crew cab and panel van. Toyota SA has brought in three wheelbase engineering techniques to cater to the diverse functionalities of the car, in the form of super long, long and standard wheelbase. The company has introduced three roof heights as well such as high, medium and low, and also wide and narrow body width. Quantum moves on powerful 2.5 liter diesel turbo and 2.7 liter gasoline VVTi engine.

The new Quantum looks super elegant, and the exterior modifications are a new bigger radiator grille, and restructured headlights and the front bumper looks super attractive with robust edges. On the rear are new exterior handle, and redesigned tail lights. Toyota has introduced a new Crew Cab range, and the attributes of the car are high roof, wide body and enormously long wheelbase. Customers can choose from diesel or petrol model.

Quantum is garnished with superb exteriors, and the interiors are equally splendid and can easily accommodate six occupants. The abundant room is contributed by the increase in width dimension. The ride encounter in the new Quantum is one of a kind, and the uniqueness lies in twin sliding doors, which paves entry into front and rear compartment, and seats can be folded to cater to greater interior room, and owners can enjoy the convenience of storing items under the seats. The most exciting part of the new Quantum is the middle seats can be folded and can be used as table and there are extra cup holders to tuck extra items.

Toyota Quantum is among the most unique cars to own, and the Vice President of Marketing sector of Toyota South Africa Motors, Glenn Crompton provided an insight into the phenomenal aspects of the car, stating, ‘’Quantum is a world class creation and the legendary factors inscribed in the car are reliability, durability and quality. ‘’

Toyota has conquered the nuances of new car design and technology, and Quantum is among its refined creations. The exclusive aspect of the car is the varied wheelbase and dimension functionalities. The long measurement of the car is ideal to cater to the needs of millions of corporate employees. Quantum is a car, minivan and bus, all combined in one product.

Quantum is a worthy purchase and the price structure of all variants is displayed on the web. The car costs R 305600 to R272000 and consumers can avail amazing warranty benefits that stretch to 100 000 km or three years.  Driving the Quantum will be loads of fun and is a perfect car to just sit back and enjoy a long drive, and head to amazing destination spots. Occupants can actually organize a picnic inside the car with its abundant room and foldable seats.

All new 2014 Toyota Corolla Altis launching in May

Toyota Kirloskar Motor (TKM) is about to make a statement to its fan following in India that it is going to launch a lot of new models in the domestic market and is not lagging behind its rivals when new car launches are concerned. The world’s auto leader Toyota’s Indian presence TKM had showcased the all new 2014 Corolla Altis and the Etios Cross at the 12th Indian Auto Expo in February offering a glimpse at the car maker’s new line-up.

corolla altis with VVTI badge-1.

While the new Toyota Etios Cross is going to launch on 7th May, the new generation Corolla was speculated to be launched in the month of July. However, Toyota seems to have expedited the launch process of the new Corolla Altis and now, it is reported that the sedan will launch in May itself.

The all new 11th generation Toyota Corolla Altis will mark a new phase for celebrity global sedan in India. The Toyota Corolla is much loved car in the international markets and a constant bestseller for over 4 decades now having enthralled over 40 million customers. However, in India the sedan has a subdued presence, as it lacks gorgeous looks that its rivals offer. Toyota has thus decided to change the scenario with all new Corolla Altis.

The all new Toyota Corolla Altis will be replacing its rather plain looking and extremely capable present model. Though retaining and enhancing the reliability and quality aspects of the veteran Corolla, Toyota has endowed the new model with a revolutionary visual appeal as compared to the current model. The all new Corolla looks bold, stylish and more elegant compared to its plain previous avatar. It comes with an aggressive looking front fascia with large stylized headlights, stylish chrome grille, sharper edges and bold body lines.

Post its launch in May, the new Toyota Corolla will thus come braced with a new appeal to allure the Indian buyers. It is also expected to get lots of new features, more premium interiors, enhanced performance and of course competitive pricing.

The all new Corolla Altis will get new LED daytime running lights both at the front and at the back. Toyota has also updated the cabin to make it look and feel more premium. The new Corolla gets eight-way adjustable driver’s seat, reclining rear seats, audio system with 7.1-inch touchscreen and navigation system, reverse camera with parking sensors, rain sensing wipers and a reading lamp among many other world-class features.

The new Corolla carries over the same engine options comprising of the 1.8-litre petrol engine producing a max power of 138bhp and the 1.4-litre diesel engine generating 87bhp of power. However, Toyota is expected to offer the same enhanced suspension in India as it offered in the 2014 Corolla for the international markets.

The petrol engine will be mated to a 6-speed manual and a 7-speed automatic gearbox, while the diesel engine will only have the 6-speed manual gearbox.

Toyota Kirloskar has commenced the pre-launch bookings of the new Corolla for an amount of Rs. 50,000.

Toyota throws design challenge to Hyundai with new Camry

The world’s auto leader Toyota Motor seems to have taken the cue from rival Hyundai Motor about the magic of alluring designs. Japanese giant Toyota has been quite eager to make drastic design changes and adopting a more engaging and revolutionary design language. Toyota had earlier accepted that it needs to give up on its safe design philosophy and offer something really appealing and stunning in order to entice modern consumers.

toyota camry

Toyota might have been feeling threatened by South Korean auto major Hyundai, which has been garnering much accolades lately for its impressive design philosophy. Interestingly, only a few years back Hyundai’s cars were criticized as boring and drab looking.

Toyota and Hyundai will engage in rivalry in the 2014 New York International Auto Show where the new Camry and the new Sonata are to be showcased.

Thus, Toyota has reportedly made drastic styling changes in its new Camry sedan model just before the auto show. This clearly shows that Toyota is eager to gain the required attention for its iconic model, and the new Hyundai Sonata’s presence in the auto show is a potential threat to it.

The latest models of both Camry and the Sonata will be engaging in a mid-sized sedan war post their debut at the 2014 New York International Auto Show. While Toyota is anxious to holding on to the Camry’s 12 year long history as the top selling car in U.S, Hyundai is bold enough to take the risk of tone down the stunning free flowing design of Sonata that launched in U.S. in 2010.

Market expert Eric Noble told the media in an interview that the traditional leader Toyota is now acting proactively to gain ground which usually the second or third major car makers do. This reaction of Toyota is primarily because of the increasingly popular Hyundai’s cars.

Toyota’s CEO Akio Toyoda, has been encouraging his engineers to follow the ‘Waku Doki’ or heart racing design philosophy apart from high performance levels across the product portfolio. The company thus made major design changes in the Camry midway its original life cycle, as it was redesigned in 2011. Toyota made it a point to make its products more engaging and the design updates that it made for the Camry is extraordinary for a car purchased more for reliability, overall value and durability rather than looks.

Toyota’s refreshed Camry is thus a challenge thrown at Hyundai and the company said that when displayed it will exceed the expectations from a mid-cycle model refresh.

2014 New York International Auto Show will be a heaven for the car lovers as a whole host of new high-end family sedans including the new Chevrolet Cruze, Volkswagen Jetta and Ford Focus will be displayed. The luxury vehicle aficionados will also get their handful with Jaguar Land Rover unveiling its Discovery Vision Concept with invisible bonnet technology, and Mercedes Benz showing off its S63 AMG 4MATIC Coupe. The Corvette Z06 convertible, the Alfa Romeo 4C and the new Ford Mustang will woo the hearts of fast car fans.

Toyota confirms fuel cell sedan launch next year

The world’s auto leader Toyota Motor is having a tough time handling a yet new series of recalls worldwide, but the car giant is certainly not sitting quietly. Apart from proactively solving the recall issues, the hybrid car pioneer is also focusing on a new range of conventional gasoline engines in order to keep its conventional cars at par with the new powerful rival models. While the Japanese car major has shifted its attention on the conventional cars, there is no reason to believe that it has lost its focus on the green cars that it is famous for.

Toyota Fuel Cell sedan

Toyota Motor has yet again confirmed of its plans to launch its much speculated hydrogen fuel cell car in next year itself that was originally scheduled to happen. Toyota has revealed that it is going ahead with its launch of fuel cell car in 2015, however the car will be offered limited numbers.

Toyota Hydrogen powered fuel cell vehicle is a futuristic looking mid-sized sedan that can be compared to the current model of Avensis. Toyota has also revealed that the company will follow the design language of the Toyota FCV concept very closely for the production model. The fuel cell vehicle of FCV concept was last displayed at the 2014 Geneva motor show held in March.

The Toyota FCV concept has been doing its display rounds since 2013 at various international motor shows. The compact looking dazzling blue sedan has a shape of a water droplet and indicates its only emission that is pure water vapor. It incorporates the fuel cell technology, which is the ultimate green technology till date and uses the power of compressed hydrogen gas and emits only pure water vapor.

Toyota has already revealed a lot of details about its FCV car. It has revealed that it will be utilizing a high-density fuel stack and will have the range of 500 miles on full tank. The Japanese car major has also revealed that the tank can be fully replenished in only a few minutes.

Talking about its limited amount of release, Toyota’s European president, Mr. Didier Leroy said that the fuel cell technology will take some time to get adopted in the market. To help the adoption process, Toyota will bring in reasonable units of the FCV to the European market. Though the volume of the FCV will be limited, they will be definitely visible on the roads in Europe he added.

Toyota is developing its Fuel Cell sedan in a joint venture with the premium car giant BMW in order to accelerate the research and development process. Toyota Europe’s high official, Karl Schlicht said that the fuel cell technology surely has a long way to go, in terms of adaptability and practicality that goes with any new technology, the same thing was there for the very popular hybrid technology just 10 years back.

He added that Toyota fully trusts the fuel cell technology as the company’s ultimate goal of fully green and sustainable commutation system.

Toyota Motor Corp’s Lexus shows NX crossover

Japanese carmaker Toyota Motor Corp will be showcasing its latest crossover vehicle the Lexus NX at Beijing Motor Show to meet competition from German and American carmakers. As the first compact crossover from Toyota the production model will be positioned below its 15 year old model Rx in direct competition with luxury model Audi Q3 and Mercedes Benz GLA. To make the car more tech savvy and to fit into luxury segment occupied by these leaders Toyota will “jazz” up the Lexus NX a little more with addition of a designer to its team of developers designated for this car. The fact that a few more luxury additions will be made to existing production model of Lexus NX has also been accepted by Toyota’s President, which shows that the firm is pulling out all stops to make this model a success.

Lexus nx crossover

Lexus nx crossover

Last year both BMW and Audi outsold Toyota’s Lexus therefore Toyota is adopting all means at its disposal to win over customers of these luxury brands to Toyota. Since China presently is the largest market for luxury cars all large brands like Audi, BMW, Mercedes have set up production units to gain advantage over imported models. Therefore to make its latest Lexus NX a success in China, Toyota has to set up a factory in China as it hopes to sell more than two thousand units within first year of launch which will help it to capture 1.3 percent of premium car segment. Market researchers have predicted that NX’s sales will grow at a rapid pace due to design and pricing enabling Toyota to sell nearly 5000 units within 6- 7 years of launch.

According to Toyota’s spokesperson, the Lexus NX will be first Lexus model with turbocharged power and will be part of the firm’s global range of vehicles. Toyota will be introducing around 14 new engines to boost fuel efficiency and one of them will be this new turbocharged variant which is a first by Toyota’s standards which till now has believed in improving combustion power of engines instead of using turbochargers. Lexus has been among Toyota’s top selling brands and last fiscal it sold around 523000 units among which 50 percent of sales were to United States accounting for 273847 units and growth of 12 percent since last year.

Even though Toyota was world leader on basis of total sales, it lost out to BMW in terms of luxury car sales. With total sales of 1.66 million which was a record of sorts for this German carmaker, BMW was just a few million ahead of closest competitor Audi which sold 1.58 million followed by Mercedes at 1.46 million. The Toyota Lexus NX has been built on its LF-NX concept which has trapezoidal radiator grille extending from hood to bottom cutting through front bumper and containing eye shaped headlight cluster with LED daytime running lights. Its interiors will be outfitted with black and yellow leather upholstery and blue lighting on dashboard. Toyota has announced that this new Lexus NX will be shown to selective press members before official presentation at Beijing Auto Show on 23 April 2014.

Toyota likely to experience slower growth

Japanese top carmaker Toyota Motor Corp is all set to post record profits in passenger car sales across the world of its varied models amounting to $10 billion for financial year of 2013.  However mood for sales in current year of 2014 seems to be somber as its marketing team has predicted a lean year ahead. Toyota’s sales have been on an upswing since past couple of years due to improved demand within Europe and slow but steady revival of markets in United States. The firm is also Japan’s most valued automobile company listed on nation’s stock exchange and also among its biggest employers. After a phase of rapid growth the firm is likely to move into a phase of slow and stable growth.

Toyota Logo

According to economists Toyota is likely to face a period of slow sales because effect of government policies to provide stimulus within manufacturing industry is slowly fading and now firms have to employ their own techniques for further improvement. This slowdown may also be due to recent increase in Japan’s sales and service taxes which will increase price range of Toyota’s products in markets like Thailand, China, Indonesia etc. which are very price sensitive markets. While its traditional markets like Europe and America are showing signs of recovery, the demand in emerging markets like Asia, South America and Africa are going through turmoil due to political and economic conditions therefore sales may suffer in these areas and affect firm’s profitability.

However a slowdown in the carmaker’s profits could also affect Japan’s economic growth and is likely to be caused by recently announced recalls of Toyota’s vehicles for faulty parts. A survey by market analysts has shown a contradictory view to the above which states that Toyota’s operating profits will continue for fiscal year of 2014 and will amount to 15 billion pounds at a modest rate of 10 percent growth. A Tokyo based group of analysts have stated refuted this estimation and stated that even if Toyota makes profits it will be flat and will not be like previous year’s growth levels as it would depend on national currency and other economic conditions.

A major reason for likely reduction in profits of Toyota in future would be due to surge in American dollar against the Yen which had make exports cheaper due to Japanese monetary policy which may not be sustainable in near future. Japan’s automobile market was benefitted by fall of yen against dollar and helped bring in profits of nearly 1.6 trillion within financial year of 2013 but it remains to be seen if this legacy of growth can be carried forward. Though Toyota’s management has passed on benefits of profits in the form of wage increases to employees in Japan but is not willing to follow a similar policy in production units at Thailand and India where it is facing labor issues due to compensation. The carmaker ‘s growth in traditional markets may slow down in forthcoming years but Toyota is likely to meet target set by Volkswagen of selling 10 million cars every year from 2018 onwards with expansion into new markets.

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