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Toyota says that in Bengaluru, increasing daily commute distances, traffic congestion and growing awareness about fuel efficiency are influencing purchase decisions.
The GST reduction in many sectors has improved purchasing power, effectively increasing the pool of first-time and repeat car buyers. Image: Toyota/X
Toyota’s strong performance in South India this year has been largely helped by Bengaluru, which accounts for almost a third of the company’s regional car sales. Senior company officials said the city’s growing preference for hybrid vehicles, rising purchasing power and rising urban mobility needs have made Bengaluru one of the most important markets for Toyota in the country.
Speaking at a press conference at Toyota’s manufacturing plant in Bidadi on Friday, Vice President of Toyota for South India, Vicellin Sigmani, said the company sold around 1,06,000 cars across South India this year. Of this, Bengaluru alone contributed about 31 per cent, underscoring the city’s central role in Toyota’s regional strategy.
Looking at the national picture, Sigamani said Karnataka accounts for about 11 per cent of the total car purchases in India. Compared to the last financial year, the overall automobile market has grown by about 35 percent this year due to improving consumer confidence and higher spending capacity.
Why is Bengaluru buying more cars?
Toyota executives attributed the sales increase to policy changes and changes in consumer behavior. Sigamani said the GST cut in many sectors has improved purchasing power, effectively increasing the pool of first-time and repeat car buyers. This trend is not limited to urban centers but is also visible in rural areas, prompting companies like Toyota to increase production.
In Bengaluru, increasing daily commute distance, traffic congestion and growing awareness about fuel efficiency are influencing purchase decisions. Hybrid vehicles, in particular, are emerging as a practical alternative to city driving, offering low running costs and low emissions without the need for charging infrastructure.
Hybrid technology and urban use
Toyota is pushing its hybrid technology as a city-friendly alternative to conventional petrol and diesel vehicles. According to Sigmani, cars equipped with Toyota’s hybrid system have received an encouraging response from customers in Bengaluru and other major cities.
The hybrid system uses self-charging technology, where the battery automatically charges while the car is moving. The vehicle runs on electric power for a significant portion of the drive and seamlessly switches to the petrol engine when the battery level gets low.
Toyota estimates that its hybrid cars run on electricity about 60 percent of the time. For a city like Bengaluru, where stop-and-go traffic is the norm, this translates into better mileage, lower fuel costs and lower emissions.
Company officials said the technology helps curb both air and noise pollution, two concerns that have increasingly come into the spotlight in Bengaluru. Since cities often rank high in congestion and pollution indices, hybrid vehicles are being positioned as a practical middle ground between conventional cars and fully electric vehicles.
Beyond Cars: Community and Skills Focus
Toyota officials also highlighted the company’s focus on social responsibility, especially in Karnataka. G Shankar, executive vice president of Toyota Finance and Administration, said the company’s role extends beyond manufacturing vehicles.
He pointed to challenges such as unemployment and skills gap among young people, especially those aspiring to work in large industrial establishments. To address this, Toyota is running skill development and community programs across the state.
According to the company, it has helped in creating infrastructure in around 20 schools and has adopted 125 institutes across Karnataka to provide training to students and staff. Toyota has also conducted training programs in engineering colleges to expose students to industry-relevant skills and expectations.
Additionally, the company has been involved in environmental awareness initiatives, which align with broader sustainability goals that are increasingly relevant in urban centers like Bengaluru.
Training and Global Exposure
Shankar said Toyota believes that long-term success depends not only on business growth, but also on the development of its workforce. Under this approach, the company has sent more than 1,000 employees to Japan for training.
The objective of this showcase is to encourage innovation, improve work culture and ensure that employees are attuned to global best practices. Company officials said such initiatives help strengthen operations at facilities like the Bidadi plant, which plays a vital role in supplying vehicles to the South Indian market.
Bengaluru in the center
With strong sales numbers, growing interest in hybrid technology and a focus on sustainability, Bengaluru is shaping Toyota’s roadmap in South India. As the city balances growing mobility needs with environmental concerns, the company is betting that hybrid vehicles and skill-driven growth will keep Bengaluru at the center of its expansion plans.
December 17, 2025, 12:28 IST
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