Diesel Ban Impacts Toyota Sales — Losses That Will Shock You

Written by: Irwin Mills

The ban on diesel vehicles with engines above 2,000cc in the Delhi-NCR region has cost Toyota a loss of Rs 1,700 crore. Toyota confirmed the business loss during the launch of the petrol Innova Crysta.

The Japanese car maker is well-known for their Innova MPV and Fortuner SUV diesel models. Reports confirm that Toyota lost the sale of around 8,500 units of Innova and Fortuner.

The company had invested Rs. 1,100 crore in India for diesel engine development. However, in December 2015, the National Green Tribunal (NGT) banned the registration of all new diesel vehicles with over 2,000cc engine or 10-year-old diesel cars plying on the road, to control the rising pollution in Delhi-NCR.

Toyota wasn't the only manufacturer worst affected by the ban. Mercedes-Benz sales also were hit badly due to the ban, and now, the German carmaker has put a hold on its diesel-investment plan.

In the coming days, the industry is expecting the Supreme Court to lift the ban in exchange for a 'green cess' on diesel vehicles. Concerning this one-time environment cess, Mercedes-Benz has agreed to pay 1 per cent environmental surcharge, which in turn, will allow them to sell its diesel vehicles in Delhi and Kerala.

Mercedes-Benz is also working toward offering petrol engine option across their lineup by September.

DriveSpark Thinks! The ban on big diesel vehicles has not curbed the rising pollution in Delhi-NCR to a great extent. Also, do you think the NGT ban was the right move or was there a better solution?

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