Toyota holds back Lexus and Daihatsu launch until emission and other regulations are cleared in the Indian automobile industry
It seems, Toyota Motors is staying true and firm to its policy of not making any fresh investment in India. Fumed at the diesel ban in India by Supreme Court and NGT the Japanese automaker announced, they won’t make any fresh investment in the country until a clear and transparent regulation is made about the automobile industry in the country.
Now the automaker has confirmed, it is not launching the two brands Lexus and Daihatsu in India.The company has already postponed the plant of launching the new Toyota Fortuner in the country. Earlier this year the company confirmed, it would bring its small carmaker wing Daihatsu in the country to compete in the small car segment.
Also the company had plans to launch the premium Lexus brand in India as well. But the company changed the plan after the ban on 2000 cc and larger diesel engines are imposed in Delhi, NCR and Kerala. Toyota has been a major automaker in India selling diesel cars. Due to the diesel ban it faced significant decline in its sales alongside Mahindra & Mahindra, Mercedes Benz.
While Mahindra adopted a policy of offering sub 2000 cc diesel engines in the ban affected areas, Toyota directly confronted the ruling. Among others, the General Motors and Ford Motor has also announced about revising their plans before new investments in India.
Both the Toyota Innova Crysta and Toyota Fortuner are very popular models in India. Toyota even launched the new Innova Crysta earlier this year. But due to the diesel ban both these cars have faced loss. The car maker believes, the ban has directly affected its business. Vice Chairman of Toyota Kirloskar Motors, Mr. Vikram Kirloskar has said, that his company is being punished for following the law. He also clarified, that until the issue is not sorted out, the company won’t make any investment.