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Toyota suffered INR 1,700 crore loss due to Diesel ban so far

 
2016 Toyota Innova Crysta

Both Innova Crysta and Fortuner are caught up by the diesel ban.

The diesel ban which prohibits the sale of passenger vehicles with engine displacement of over 2.0-litre has been hurting the sales of automakers like Toyota Kirloskar Motor, Mercedes-Benz and Jaguar Land Rover.

Toyota’s popular Innova Crysta and Fortuner have been kept off the shelf in Delhi (and now in top cities of Kerela) due to the ban. This has led to huge losses to the company.

2016 Toyota Innova Crysta

The Innova Cyrsta recently received a 2.7-litre petrol engine to cater to areas where the diesel variants are banned.

Speaking to media, N Raja, sales and marketing director, Toyota Kirloskar Motors, has stated that the diesel ban has severely impacted the company’s operations in India by leading to a production loss of 8,500 units of the Toyota Innova Crysta and Fortuner.

In an attempt to counteract the ban, the Japanese automaker has recently introduced a 2.7-litre petrol variant of the Innova Crysta which will primarily cater to the demand in the NCR. The production loss is estimated to have resulted in financial loss of around INR 1,700 crore.

Toyota Fortuner at 2016 Bangkok Motor Show

Expect a few new products, Toyota has frozen new investment plans in India (image: New Fortuner).

The supreme court has reserved the judgment on the diesel ban and is likely to levy a hefty green tax on big engined diesel vehicles to discourage customers from buying it. Due to the unfavorable conditions, Toyota has frozen its future investment and product plans for India.

Also read – Toyota Etios, Liva facelift unveiled in Brazil

Some Toyota products that were planned will make it to India but fresh proposals would be stalled for a while. The diesel ban has caused an erosion of confidence in India, says a TKM official.

Via – Economictimes.Indiatimes.com

 

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Nithyanandh Karuppaswamy

Winner of national level automotive quiz competitions, Nithyanandh aka Nithz jumped into the blogosphere right after gaining a degree in Mechanical Engineering. Love for automobiles and an even greater drive to share his knowledge with the automotive community, Nithz is Deputy Editor at RushLane.

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