Toyota Kirloskar Motor pays hefty dividends to Japanese parent: Report

Toyota Kirloskar Motor, the maker of the Fortuner SUV, has seen a multifold jump in dividend payouts to its Japanese parent, Toyota Motor Corporation, the world’s largest car manufacturer by volume.

The Indian joint venture’s dividend payouts to Toyota Motor Corp surged from Rs 87 crore five years ago to Rs 5,652 crore in FY26, according to a report by Mint.

Dividend per equity share rose to ₹81 in FY26, from ₹1.26 in FY21, the report said. The respective payouts were based on earnings for FY25 and FY20.

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Toyota owns an 89% stake in Toyota Kirloskar Motor, while the remaining stake is held by Kirloskar Group.

The dividend payments are in addition to the royalties paid to Toyota, which have risen sharply from ₹337 crore in FY21 to ₹2,112 crore in FY26. Combined, dividends and royalty payments enabled the Japanese parent company to receive more than ₹7,000 crore from India in FY26.

The ₹5,652 crore dividend of Toyota Kirloskar Motor is higher than ₹4,244 crore paid by India’s biggest carmaker Maruti Suzuki and ₹1,706 crore paid by Hyundai Motor India, the listed Indian units of Japan’s Suzuki Motor Group and Korea’s Hyundai Motor Company, reported Mint.

This comes at a time when Toyota is building its third plant in Bidkin, Maharashtra, to produce a new SUV model. The new factory will have a production capacity of 100,000 units per year and is slated to start production in the first half of 2029.

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The Japanese automaker’s existing two plants in Karnataka’s Bidadi currently produce the Innova HyCross, Innova Crysta, Fortuner, Legender, Camry Hybrid, Urban Cruiser Hyryder, and Hilux. Both these plants have a combined capacity of 3,42,000 units per annum.

Toyota Kirloskar Motor has gone on to become India’s fifth-largest carmaker by volume, thanks to its global partnership with Suzuki, which allows it to sell affordable rebadged models while continuing its focus on multi-purpose vehicle (MPV) and sport utility vehicle models.