Supreme Court’s diesel ban affects Toyota India, company to reconsider future investments

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New Toyota Innova Crysta (126)

Earlier today, we brought to you the news that Toyota India had reduced the price for the Camry Hybrid in Delhi by Rs. 2.3 lakh. The price cut came after Delhi government reduced the excise duty under the National Electric Mobility Mission Plan (NEMMP).

In recent news, the company is said to be re-considering its operations in the country due to the Supreme Court’s diesel ban in the national capital. Recently, Kerala became one of the states to implement the diesel with a special bench of the National Green Tribunal banning registration of new diesel vehicles with a displacement of 2000cc and above. Reports suggest that Toyota does not plan on launching new models in India. The move could also affect the upcoming next-gen Fortuner which is due for a launch in India.

2015 Toyota Fortuner 3.0 4x4 AT outdoor (3)

Shekar Vishwanathan, Vice-Chairman and Whole Time Director, Toyota Kirloskar Motors (the Indian subsidiary of the company), said that what was hurting them was not the ban but the unfairness encountered due to the ban. Orders were passed without hearing them and all this was going against the principles of natural justice. He further added that they could understand if all the diesel vehicles were banned, but why only with 2000cc and above.

Also read: Armoured Toyota Fortuner: Yours for INR 63 lakhs; weighs close to 5 tons

He denied the closure of operations in India while saying that there are about 25,000 people whose jobs are directly and indirectly linked to their operations and they wouldn’t abandon them. However, he did not specify any particular details on what the company was considering.

Toyota Innova Crysta official launch (6)

The company recently launched the successor to the Innova MPV, known as the Innova Crysta. The model is said to be clocking good numbers but the ban in states such as Delhi and Kerala have resulted in lower sales. The company’s move to re-look into its operations in India comes shortly after German luxury automobile manufacturer Mercedes-Benz’s announcement that it had put its investment plans in the country on hold due to the ban.

With inputs from PTI

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