Toyota ready to invest following diesel ban lift; the Japanese manufacturer earlier threatened to stop fresh investments in Indian market
Toyota Kirloskar Motor will make fresh investments in Indian market, after the Supreme Court has lifted the diesel ban in Delhi-NCR. The nearly nine month long ban on 2000 cc and larger diesel engines provoked the Japanese auto manufacturer to threaten that, it won’t launch any new models in the country or make any fresh investments as well. But after the apex court has lifted the ban on larger diesel engine powered cars, the Japanese automaker is ready to launch new models in India.
The company was one of the auto majors largely affected by the diesel ban in Delhi and NCR, as it largely relies on diesel engines for its cars. Now with the ban lifted, it is ready to bring new models, which include the new Toyota Fortuner. Incidentally, the Fortuner has a large customer base in Delhi and NCR. Also the company has planned to launch the premium car brand Lexus and the smaller car maker brand Daihatsu in the country.
The launch of Lexus is now cleared with the Toyota ready to launch for fresh investment in the country after the diesel ban has been lifted. And when it comes to the Daihatsu, the plan is still being worked out by the Toyota Motor. The Japanese automaker has two production facilities in Karnataka, which together can produce 310,000 units per year. But these facilities are being used up to their 55% capability, which is why Toyota wants to bring more new models in India.
The chief executive officer for Asia, Middle East & North Africa region, Mr. Hiroyuki Fukui said, the automaker will focus on introducing vehicles which will cater the requirements of Indian customers. The diesel ban in Delhi and NCR has caused the Japanese auto manufacturer losing nearly Rs. 1,700 crore of estimated revenue from around 8,500 units of vehicles. The national capital region holds 7% – 8% of total domestic sales for the Toyota Kirloskar Motors.
Source: ET Auto