Toyota Kirloskar Motor IPO In The Works, Japanese Carmaker In Talks With Indian Bankers: Report

Toyota Motor Corporation is reportedly weighing a potential initial public offering (IPO) of its Indian subsidiary, Toyota Kirloskar Motor Ltd. Discussions are underway at the company’s Tokyo headquarters, reported Mint, citing sources familiar with the matter.

According to the report, the Japanese automaker has held a series of meetings with Indian investment bankers as it explores the possibility of raising between $700-800 million through the listing.

“The company is warming up to the plan of listing its India subsidiary,” a source told Mint, adding that several rounds of meetings had already been held with Toyota’s global leadership team, which will take the final decision.

Another source informed the publication that the talks included Toyota Motor Corporation’s chief financial officer and another senior executive responsible for strategic and global operations. The report quoted a third person stating Hyundai’s recent listing success in India had encouraged other multinational automakers with a strong local presence to evaluate similar moves.

One of the people quoted in the same report said while Japanese executives were central to the decision-making, bankers had also met Toyota’s local management to examine the listing prospects. However, the process has not yet been formalised.

In response to queries from Mint, a Toyota Kirloskar spokesperson denied any current plans for a stock market debut.

Toyota Motor currently holds an 89% stake in Toyota Kirloskar Motor, with the remainder owned by the Kirloskar Group. The Indian arm’s portfolio includes popular models such as the Innova, Hyryder, Fortuner, Hilux, Camry and Glanza. Over nearly three decades, Toyota has built up a 7.2% share of the domestic passenger vehicle market, according to reports.

Should the IPO plan materialise, India would join the ranks of countries such as the US, UK and Germany where the world’s largest carmaker is already listed. It would also make Toyota only the second international carmaker to be traded on Indian bourses, after Hyundai Motor India Ltd.

Meanwhile, Toyota Kirloskar Motor has been enjoying strong financial performance. As reported by Autocar Professional, the company posted its best-ever results in FY25, with a consolidated net profit of Rs 5,672 crore, an 18.5% jump from Rs 4,787 crore in FY24. Operating revenue climbed 16.2% to Rs 64,895 crore, supported by higher sales of hybrid models and expanded production. Profit before tax rose 23% to Rs 6,494 crore, while dividends surged to Rs 3,576 crore, more than five times higher than the previous year, reflecting strong cash flows.

Toyota Kirloskar also registered sales of 34,236 units in August, marking an 11% year-on-year growth, reported the company.