Toyota plans petrol version of Innova to beat diesel ban in India

Japanese carmaker Toyota is working on a petrol variant of its multi-purpose vehicle Innova after a ban on registration of diesel cars with 2,000cc and above engines in Delhi-NCR spread to other states like Kerala.

Coming on top of the ban in Delhi-NCR, the company's major market for Innova, a similar ban in Kerala has made the company rethink its India plans.

"Delhi-NCR is the biggest market among other regions of the country. Since sales of Innova and Fortuner have stopped there, there will be considerable impact in overall sales," reports quoting VP of Toyota Kirloskar Motor Sailesh Shetty as saying.

Speaking on the sidelines of the launch of Innova Crysta in Bengaluru, he said the new ban on diesel vehicles above a certain engine capacity (2,000cc) in Kerala, coming on top of the earlier ban in the National Capital Region, has forced Toyota to rethink its India plans.

He said Toyota is looking at launching a petrol version of the popular Innova brand, and other popular models.

He said a continued ban could hit at least 13 per cent of the company's sales of India and Fortuner. The company's sales in the NCR (National Capital Region) have already dipped by about eight per cent.

The falling sales could hit capacity utilisation at its upcoming Rs1,000-crore diesel unit, expected to soon go on stream. Its capacity would be 110,000 units a year, for the domestic market.

Before the NCR ban in December 2015, sales of the former were 5,800-6,000 units a month; these are now 4,400 a month. Fortuner sales are now 900 units a month, down from 1,600 units due to ban in NCR.

However, Toyota Kirloskar welcomed the ban on diesel vehicles above 10 years of age. Shekar Viswanathan, vice-chairman, said it would improve air quality by getting rid of older and higher polluting vehicles.