Company hopeful despite SC ban on diesel engines above 2000 cc in Delhi NCR.According to ET Auto, Toyota has invested INR 1,100 crores on its new diesel engine assembly plant in Karnataka. The facility will commence operations from June 2016, and will produce the company's latest GD range of diesel engines for the Toyota Innova Crysta and 2016 Toyota Fortuner.Given that the Supreme Court has extended stay on the infamous diesel ban till April 30 on Delhi NCR, one of Toyota Kirloskar Motor's top cities, Toyota had, reportedly, halted further investments till a solution was formalized.
However, Toyota now believes that diesel tech will help the company meet the new fuel efficiency mandate when those norms come into place in 2017. Hence, the company has resumed investments on the plant, despite the ban.
The state-of-the-art production facility is the first Toyota diesel engine manufacturing plant in India. It will generate employment for over 500 people and the company will localize the components in a phased manner. The report states that there are currently 77 parts localized through 23 vendors in Phase-1, and a further 65 parts are being localized through 29 vendors covering 35% of all parts.
The Innova Crysta is expected to launch in the first week of May, and demo units have been spied at some dealerships.
[Source: ET Auto]