Diesel Ban: Toyota Loses 7% Sales of Fortuner and Innova in Delhi-NCR

Highlights
- The diesel ban came into effect from December 16, 2015 in the capital
- The ban also holds Toyota from selling the new generation Innova Crysta
- The SC's decision will affect TKM's plans of launching the new Fortuner
Japanese auto major Toyota Kirloskar Motor (TKM) has suffered a seven per cent loss in sales of the premium Fortuner and Innova models in the Delhi-NCR region due to the unprecedented ban on diesel cars with an engine capacity of 2000cc and above. N Raja, Director and Senior Vice President (Sales & Marketing) - Toyota Kirloskar Motor said, "Both the Innova and Fortuner are affected due to the diesel vehicle ban ordered by the Supreme Court in Delhi and NCR. The percentage loss of sales of Innova and Fortuner put together is 7 per cent until now."
The ban that was levied late last year left a host of car manufacturers in the doldrums as sales for their popular models have taken a massive hit in the Delhi-NCR region. For Toyota, the Innova and Fortuner have been the best selling models in their respective segments with a strong market share in North India. The extension of ban over the past months also saw the recently launched new generation Innova Crysta not being sold in the capital.
Speaking about the ban, N Raja stated, "We respectfully disagree with the order of banning the registration of diesel vehicles above 2000cc in NCR which will severely affect the legitimate interests of TKM and its dealers in NCR. We along with a couple of other industry players are the only ones affected. The unintended beneficiaries of this ban are those who produce less than 2000cc vehicles with the same diesel that is said to be polluting."

2017 Toyota Fortuner
Furthermore, TKM called the apex court's move illogical considering the ban targets vehicles above 2000cc. Toyota also saw the move uncalled for, especially with the government yet to frame policy initiatives for long-term investments on the diesel front. That said, it did not offer a direct answer to the query if Toyota was restructuring its investments in India.
When asked about future launches, N Raja replied saying that the Japanese manufacturer is hopeful that the Supreme Court will conclude the diesel ban order in an amicable manner shortly. The decision from the apex court that will be out later today is extremely important as it will help the automaker and many others to take a decision on its future launches, which includes the new generation Fortuner.
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Last Updated on May 31, 2016
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