Toyota Reviewing Its India Operations Due to Diesel Ban

After Delhi, sales of cars with over 2000 cc engines has been banned in Kerala too.

• With the ban on diesel vehicles with engines above 2,000 cc extended to Kerala, Japanese auto major Toyota is “re-looking” at its Indian operations saying orders are passed “against principle of natural justice”.
  
  
• Although the company, which operates in India as a joint venture as Toyota Kirloskar Motor, with the Kirloskar group, is not considering shutting shop here. But at the same time, it is also not looking at launching new models here.
  

We have already started re-looking at our operations. What is hurting us is not so much the ban but the unfairness. Orders are passed without hearing us. It is going against the principles of natural justice. We feel our vehicles are being targetted.

Shekar Viswanathan, Vice-Chairman and Whole-time Director, Toyota Kirloskar Motor

• Shekar was reacting to the direction by National Green Tribunal Circuit Bench in Kochi to Kerala government not to register any diesel vehicle in with engine capacity of 2000 cc and more, except public transport and local authority vehicles. The green bench had also banned light and heavy diesel vehicles, which are more than 10 years old, in six major cities, including state capital Thiruvananthapuram and commercial capital Kochi.
  
  
• Toyota is among the worst hit automobile manufacturers due to the ban imposed by the Supreme Court on registration of diesel cars and SUVs with engines above 2,000 cc in Delhi and National Capital Region last December.
  

We can understand if they banned all diesel vehicles but why only 2,000 cc and above?

Shekar Viswanathan, Vice-Chairman and Whole-time Director, Toyota Kirloskar Motor

• When asked if the company will consider closing operations in India, he said: “There are about 25,000 people whose jobs are directly or indirectly linked to our operations. We are not going to abandon them.” While he did not elaborate what “re-looking” at Indian operations would entail, Viswanathan said post the diesel ban issue, Toyota headquarters is questioning the rationale for making investments to launch new models in India.
  

(With inputs from PTI.)