The demand for the Innova Crysta MPV and the Fortuner luxury SUV is so high that Toyota is unable to meet it. The result – Long waiting periods for both vehicles and frustrated customers. Toyota is stuck in a difficult position as it cannot produce more of the Crysta and Fortuner – the company has very little spare capacity at its factory in Bidadi, near Bangalore. This factory, which builds the Innova and Fortuner, has a capacity to produce 1 lakh cars each year, and 95 % of its capacity has already been utilized.
Another factory, where Toyota produces the Etios sedan and Liva hatchback, has a production capacity of 2.1 lakh cars and is currently underutilized. However, this factory does not have the equipment to handle production of larger cars like the Innova and Fortuner.
There are only two ways in which waiting periods for the Fortuner and Innova Crysta can be brought down if, 1. Demand for both the vehicles needs to fall. But this is unlikely to happen as both vehicles are very popular and competition is very weak. 2. Toyota adds new production capacity.
Toyota Kirloskar Motor has now requested its parent organization – Toyota of Japan – to find a solution for the capacity constraint. Currently, the Innova Crysta has a waiting period of 4-6 weeks. The Fortuner has a waiting period of 6-10 weeks.
Next year, competition for both the Fortuner and Innova is likely to increase. Mahindra has plans of bringing in a new 7 seat SUV based on the new Ssangyong Rexton. This Mahindra-badged SUV will be much cheaper than the Fortuner but will offer 7 seats, four wheel drive, a ladder frame chassis and a powerful diesel engine.
A new premium MPV, codenamed U321, will also be launched next year, at a price much lower than the Innova Crysta. Tata Motors will also launch a 7 seat SUV by 2019, with Land Rover inputs. The Tata SUV will also be cheaper than the Fortuner.