• Automobiles

Diesel Car Ban Causes Toyota to Get Back with its Fresh Investments

In recent days, all the news channels and media reports are awashed with a single topic - Diesel ban. Yeah its diesel ban issue, which has become the most printed headlines on the newspapers since last couple of months. On one side, it has definitely came forward with some positive results in order to control pollution, the other side of the coin, however, doesn’t seem favorable to a lot of automobile makers out there, which have been affected in terms of sales.

Companies like Mahindra and Mahindra, Toyota, Mercedes, and many other automobile manufacturers who are well known for their heavier diesel engine vehicles are facing the real downfall in the sales. As the fresh reports reveals, Toyota has made up its mind and halt all the fresh investments in the country.

As the National Green Tribunal (NGT) hasn’t disclosed any official information about the withdrawal of the current implementation, Toyota is also undertaking a serious review of its current affairs on the diesel vehicles and might take a pause for introducing some of its proposed models.

Also recommended: Diesel Vehicles Over 10 Years Banned in Delhi

"There is erosion of confidence in India... We are halting new investments, most definitely," Shekar Viswanathan, Vice-chairman and Director at the company's Indian subsidiary Toyota Kirloskar Motor, conveyed to Times of India.

He also added, "We will bring in some products that were planned, but fresh proposals will be on ice for a while... We will rework product plans, at least till 2020. Some of the products that we had planned to introduce will be re-thought."

It is believed that the same reason exists behind the delay of new generation Toyota Fortuner that was earlier slated to be launched during the festive season and now it is postponed again for later this year. Some of the media reports suggest that the launch of 2016 Fortuner will only take place by the end of this year.

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The competitor Honda and other automakers are also planning to take some similar action as of the Toyota to slip out from the decreasing sales revenue.

“As a consequence, we are not able to plan confidently. We do not know what will happen next," stated Jnaneswar Sen, Senior Vice President of Sales & Marketing at Honda Cars India. “All these actions are happening suddenly, and in a piece-meal basis. Consumers are also confused."

Source: Times of India

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