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Toyota's market in India affected by diesel car ban

Toyota's market in India affected by diesel car ban
Nikhil Puthran Nikhil Puthran Monday 16 May 2016, 14:50 PM

The diesel engine over 2000cc ban in Delhi has been affecting all major automotive players like Tata Motors, Mahindra, Toyota and Mercedes-Benz. The Japanese automaker Toyota, has stated that its confidence in India has reduced due to uncertainty in the sale of high-end diesel vehicles in the National Capital Region.

Speaking on the occasion, TKM vice-chairman Shekhar Vishwanathan, said, “Toyota Motor’s confidence in India has taken a big knock after the Supreme Court ban since mid-December last on sale of high-end diesel cars and SUVs, and the continuing uncertainty... is only adding to it. But it is our job at Toyota Kirloskar Motor to reinstate that confidence.” He further added that, “It has become very difficult to launch new products or commit fresh investments. This is in spite of the fact that we have been producing vehicles complying with all the norms laid out in the country from day one.”

Popular Toyota models like Fortuner, Innova, Prado and Land Cruiser have taken a strong hit, except for the Corolla, Etios and other lower end models. The company has no plans to introduce newer cars with bigger diesel engine until the ban is not officially lifted. Though paying additional cess will not be a fair idea, Vishwanathan has indicated that paying additional cess to avoid ban might be considered.

While a lot of the manufacturers are looking at workarounds, case in point being Mahindra, Toyota is yet to go down the route. With the launch of the New Innova Crysta and them being unable to sell it in the NCR region, the sales charts will be presenting some unpleasant news for the company.

 

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