Toyota Kirloskar Motor Pvt. Ltd has emerged as a major dividend engine for its Japanese parent, with payouts soaring to ₹5,652 crore in fiscal year 2026 from just ₹87 crore five years ago. According to reports from Mint, dividend per equity share rose to ₹81 in FY26 from ₹1.26 in FY21. The respective payouts were based on earnings for FY25 and FY20, with Toyota Motor Corp. owning 89% of the joint venture and Manasi Tata-led Kirloskar Group holding 11%. The surge demonstrates how Toyota's India business has become a significant cash generator for its Japanese parent, even as the automaker steps up investments in the country.
The dividend surge comes as Toyota's India business has swung from a ₹55 crore loss in FY21 to around ₹5,225 crore profit in FY26. As reported by Mint, Toyota Kirloskar reported a profit of ₹5,672 crore in FY25, while revenue grew 9% to ₹70,578 crore. However, net profit declined 8% due to higher costs. The payouts are based on the company's earnings during FY25. In May, Toyota announced plans to build a third manufacturing plant in Maharashtra with annual capacity of 100,000 vehicles, taking its total India capacity to 450,000 units by 2029. The carmaker sells a range of SUVs including Innova HyCross, Innova Crysta, and Fortuner.
The dividends come in addition to royalty payments to Toyota, which have surged from ₹337 crore in FY21 to ₹2,112 crore in FY26. According to Mint reports, put together dividend and royalty payments, the Japanese parent received over ₹7,000 crore from the Indian operations during the last fiscal. The ₹5,652 crore dividend from Toyota Kirloskar is higher than ₹4,244 crore paid by Maruti Suzuki and ₹1,706 crore doled out by Hyundai Motor India during FY26. Toyota also has an agreement with Maruti Suzuki to sell rebadged versions of Maruti Fronx, Baleno, Ertiga and eVitara, with experts suggesting the model-sharing partnership has helped boost profitability.
In FY26, passenger vehicle sales grew 8% to 4.6 million units according to data from Society of Indian Automobile Manufacturers (SIAM). As reported by Mint, Toyota's sales in India grew 19% to 366,896 units in the year. The investment cycle comes as global carmakers turn increasingly bullish on India amid challenges in markets such as North America, Europe and China. Japanese counterpart Suzuki via its India unit is set to invest ₹77,500 crore till FY31, while Hyundai announced a ₹45,000 crore investment in India till FY30. European manufacturers like Renault and Volkswagen have also lined up launches in the Indian market to capture growth.
