Toyota may split its Indian operations into two units – one solely handling manufacturing and the other focused on marketing, distribution and sales.

A report in The Economic Times says the move would be part of a strategy to boost its presence in India.

The newspaper noted that TKM deputy-managing director KK Swamy resigned his position this week.

Unconfirmed reports said he may be headed to a rival car company, possibly Volkswagen.

It is not clear if Mr Swamy’s exit is linked to the restructuring plan or what the timeframe for the plan may be, the newspaper said.

The report added that Toyota management may be attempting to replicate in India its Indonesian business model, where it has separate structures for manufacturing and marketing. Sources said that marketing, distribution and sales functions were likely to be consolidated as a new unit headquartered in Gurgaon while Bangalore will be developed as the manufacturing hub.

The restructuring also comes in the context of reports that India may be the mother hub for its “new strategic small car manufacturing” globally.