Diesel car ban: Toyota to halt new investments in India

Toyota Motor Corp will reportedly halt the influx of any fresh investments in India following the lack of clarity on the fate of luxury diesel vehicles in the National Capital Region. The decision has come following a top-brass meeting at the Asia-Pacific headquarters of the Japanese carmaker in Singapore recently.

“We do not plan to launch any new models or make any fresh investments in the country till we know what lies ahead,” vice-chairman of Toyota Kirloskar Motor Shekar Viswanathan has been quoted as saying.

The Supreme Court ban on the sale of large diesel cars in Delhi and National Capital Region (NCR) to improve the region’s toxic air quality has hurt companies such as Toyota, said Viswanathan. 

He also revealed that he was summoned to Singapore (Toyota’s Asia-Pacific headquarters) to discuss why the Indian government was not being able to convince the Supreme Court on the futility of the ban.

The NCR accounts for around 15 per cent of the sales of Toyota Kirloskar. Thus after the diesel car ban that was imposed in the region from December last year, and then its extension last month, the company’s sales dropped dramatically by y-o-y 41 per cent to 7,637 units in March.

Toyota has banked on the success of its bigger cars – Innova and Fortuner – in India. Both powered by 2000cc plus engines, the cars are set to be launched in their facelifted avatars in the country later this year. 

As for the future of Toyota in India, the next update could be expected after the hearing of a plea, lodged by carmakers against the ban, by the apex court on April 9.