Could be manufactured at Toyota's new engine plant in Jigani, Karnataka.
Autocar Professional reports that Toyota could manufacture small displacement diesel engines like the 1.4L D-4D at their new engine plant in Jigani, Karnataka, which currently produces the GD-series of engines for the Toyota Innova Crysta.
The 1.4L diesel engine powers cars like the Toyota Etios and Etios Liva, as well as the Corolla Altis. Given that Toyota is rethinking new investments on the Indian market following the crack-down on diesel powered cars, there is still some uncertainty on its local production.
Should the engine go into local production, it will allow TKM to price its products more competitively. Currently, the 1.4L engine is imported from Japan, thus amassing custom duties and taxes that affect the final pricing of the car.
With Toyota looking to introduce a facelift for the Etios as well as a premium Honda City-rival (codenamed Etios C), competitive pricing could help push more volumes in the market. A locally manufactured engine attracts far fewer taxes, thus contributing to a competitive final price.
[Source: Autocar Professional]