Toyota Unfreezes Investment Plans In India

A few months ago, Japanese automotive giant Toyota decided to freeze further investments in India because of the diesel ban fiasco in Delhi-NCR. Consequently, we saw blockbusters like the Fortuner and Innova lose market share to their rivals since both Toyota products had diesel engines with a cubic-capacity in excess of two litres.

It was only after eight months that automobile manufacturers could let out a sigh of relief, when the diesel ban was lifted from the national capital and the adjoining areas. This was done in exchange for an environment cess that the automotive manufacturers will have to pay on the sale of every diesel car with an engine capacity of 2000cc or more. Toyota has now shared that it will focus more on India and introduce more vehicles to cater customer demands in the fifth-largest automotive market in the world.

Hiroyuki Fukui, CEO for Asia, Middle East and North Africa reportedly said, “We would like to be a good citizen wherever we open and India is one of the promising markets in Asia. Our production is only half used. We have huge potential. In India we have the emissions, the regulations. We understand it is important for the health of the people. We are trying to find an amicable solution for sustainable growth. That is why I say we will grow step by step."

Toyota had planned to launch subsidiary brands Lexus and Diahatsu in India but, due to the diesel ban, those plans were also put on hold. Since the regulatory uncertainty about the sale of diesel vehicles has now been cleared, the brands will sooner or later make their way to India. N. Raja, director at Toyota Kirloskar Motor, said that there are no roadblocks for the introduction of Lexus and Diahatsu now and that plans are being worked out in Japan.

Earlier this year, the Japanese carmaker launched the new Innova Crysta with both petrol and diesel engine options. Toyota is now readying itself to launch the facelifted versions of its Etios sedan and the Etios Liva hatchback during the upcoming festive season. With the diesel conundrum sorted, Toyota will be looking to regain its market share by introducing its new Fortuner to compete with the Ford Endeavour.