We rely on demand pull; no excess stock with dealers: Toyota
Business Standard|July 02, 2024
Toyota Kirloskar Motor (TKM) does not have excess inventories with dealers because the company works on a "pull" system, by which its production is aligned with demand, its Country Head and Executive Vice-President Vikram Gulati told Business Standard on Monday.
DEEPAK PATEL
We rely on demand pull; no excess stock with dealers: Toyota

Last month, the Federation of Automobile Dealers Associations (Fada) raised an alarm about growing four-wheeler inventories at dealerships across India.

It said the dealers were holding about 550,000 vehicles, equivalent to 60 days' supply. This surplus stock could strain dealers financially due to increased interest expenses. To deal with this issue, Fada has started discussion with the Society of Indian Automobile Manufacturers.

Gulati said: "We have a different model. It is a 'pull' system rather than a 'push' system. Even earlier, we never had this issue because we produce only what the market demands."

This pull-based approach is more responsive to real-time market conditions than the traditional "push" model of producing and pushing inventories to dealers.

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