The ban on diesel vehicles in Delhi that are over 2000cc has only caused problems for automakers and Toyota has definitely taken a big hit. The Japanese carmaker has put fresh investments on hold till the company reviews the status of the diesel ban.
The reason why Toyota has taken such a step is not only because of the ban but also because of the National Green Tribunal's (NGT) order to de-register diesel vehicles that are older than 15 years.
What this law means to Toyota is that it cannot sell two of its best-selling products, the Innova and the Fortuner in the Delhi NCR region and in Kerala. Also, vehicles that are older than 15 years have to be de-registered and once that happens, the vehicles have to scrapped. They cannot be sold anywhere else in India.
This has forced Toyota to rethink and also put on hold the launch of the next generation Toyota Fortuner, which many have been eagerly looking out for. The Delhi NCR region and Kerala are huge markets for Toyota.
The diesel ban has not only affected Toyota, but other carmakers such as Honda are also affected. Honda used to manufacture around 400 diesel engines per day, but now makes only 150.
Source: Times Of India