TOYOTA

Business:
• Toyota is a Japanese
automotive manufacturer headquartered in Japan.
• 2nd largest automotive manufacturer.
• Toyota entered India in 1997 in a joint venture with
the Kirloskar Group. It holds 89% of the share and
the remaining 11% is owned by Kirloskar Group.
• Has a 4.27% market share in India.
• Is 4th largest car manufacturer in India.
 Business Model:

• Uses cost-leadership strategy to overcome

competition and to reach maximum customers.
• Use of strategies like JIT and Kanban help in
implementation of Low cost Production model.
• Though not so popular in India(as compared to
Maruti Suzuki) has very high sales in Japan and North
America thus maximising revenue.
• Fortuner , Qualis, Innova are the best selling cars in
Indian market produced by Toyota.
 Liquidity Ratios and Analysis:

• Current Ratio=1.49
This ratio is high for an automobile sector and shows
that Toyota has more cover for its liabilities than
required.
• Quick Ratio=1.08
This ratio is comparatively low to current ratio dur to
high trade receivables in the balance sheet.
• CFO/CL=0.267
The CFO is very less compared to Current Liabilities
as due to high depriciation charged on the fixed
assets.