With Supreme Court banning of the sale of large diesel cars in Delhi and National Capital Region, in order curb region’s toxic air pollution, though the decision has let down many brands like Toyota. Earlier, Toyota was planning to invest in its India operations, but will halt new investment till there is clarity on the fate of diesel-powered vehicles. Reportedly, the company could manufacture petrol engines in India. India has also advanced the implementation of stricter car-emission norms by 2020, adding to the uncertainty for car makers.
As of now, Toyota has capped any new investments in India operations, as Toyota’s flagship models Innova and Fortuner come within the ambit of the diesel banning. The NCR region accounts for 15% of the sales of Toyota Kirloskar. The company’s sales dropped 41% to 7,637 units in March as compared to the corresponding month last year, Toyota said on 1 April. But, the company is still committed to launch the Toyota Innova Crysta which is most likely scheduled in May.
Toyota was planning to manufacture the latest range of GD diesel engines at a new engine assembly plant in Jigani, Karnataka, which would power the Toyota Innova Crysta and the next generation Toyota Fortuner. But it is speculated that it could also manufacture petrol engines to keep prices competitive. Currently, customers are allowed to register the Toyota Etios range and Corolla Altis, while the more popular Toyota Innova and Fortuner are affected by the diesel banning.