Diesel Ban: Toyota May Not Launch New Models in India

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.

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