Diesel Ban: Toyota May Not Launch New Models in India

The Japanese automaker said it is "re-looking" at its operations in India.

By Carandbike Team

1 mins read

Published on May 25, 2016

Highlights

After Delhi, Kerala also introduced a ban on diesel vehicles over 2000cc
Toyota is among the worst hit by the diesel ban
The Japanese carmaker has started 're-looking' at its operations in India

There is little doubt that the diesel ban has received mixed response. After the ban on registration of diesel vehicles with engines above 2,000cc was introduced in Delhi, the state of Kerala also recently jumped on the bandwagon. About its consequences, SIAM said the diesel ban in Delhi has already cost about 5,000 jobs along with a production loss of about 11,000 units. It is estimated that the ban in Kerala will affect nearly 40,000 heavy motor vehicles and 98,000 light motor vehicles. The ramifications are many, for both - customers and manufacturers. Case in point, Toyota. The Japanese automaker said it is "re-looking" at its operations in India. Though Toyota is not considering closing operations in India, it is, however, not planning to launch new models here either. Shekar Viswanathan, Toyota Kirloskar Motor Vice-Chairman and Whole-time Director, told PTI, "We have already started re-looking at our operations. What is hurting us is not so much the ban but the unfairness. Orders are passed without hearing us. It is going against the principles of natural justice. We feel our vehicles are being targetted." Mr Viswanathan was reacting to the order by the National Green Tribunal's (NGT) bench in Kochi to cease registration of diesel vehicle with engine capacity of 2000cc and more. The bench also banned light and heavy diesel vehicles older than 10 years in six major cities in Kerala, including Thiruvananthapuram and Kochi. Toyota is among the worst hit by the diesel ban. Mr Viswanathan said, "We can understand if they banned all diesel vehicles but why only 2,000 cc and above?" About the prospect of closing operations in India, he said, "There are about 25,000 people whose jobs are directly or indirectly linked to our operations. We are not going to abandon them." He explained that the company is seriously questioning the motivation for investments to launch new models in India. While the new Toyota Innova Crysta is doing very well for Toyota, the company is affected by the sales it is missing out on in its bigger markets in India - Delhi-NCR and Kerala. One must note that Toyota isn't the only one to reconsider its strategy; Mercedes-Benz also recently deferred investments in India due to the ban on sale of larger diesel vehicles in Delhi-NCR. You might also be interested to see the price of the best cars in India: Renault Kwid, Honda City, Maruti Swift, Hyundai Elite i20, Maruti Baleno, Alto 800, Renault Duster, Maruti Wagon R, Maruti Swift Dzire, Mahindra Scorpio, Mahindra XUV500