The diesel ban in Delhi could have been a good move to control the air pollution, but carmakers are affected. Toyota has been affected the most, and the company has also halted the launch of Lexus and Daihatsu brands in India.
The Japanese carmaker will also not make any fresh investments in India until the uncertainty surrounding the automobile industry is sorted. General Motors and Ford too are looking at their investment plans.
Toyota was the worst affected by the diesel vehicle ban because two of its best sellers, the Innova and the Fortuner fall under the category of vehicles that are banned (above 2,000cc engines) in Delhi. The national capital is also the biggest automobile market in India.
The ban of diesel vehicles by the Supreme Court (SC) and the National Green Tribunal (NGT) came at a time when Toyota was making huge investments in India for diesel technology.
In June, Toyota opened a factory in Bangalore after investing Rs. 1,100 crore to make diesel engines. Now, the carmaker is not sure as to how to utilise the plant.
According to ET Auto's report, Lexus was scheduled to launch in India during 2017, and Daihatsu, Toyota's small car brand was to enter India was to be finalised around the festive season. Now, Toyota has pulled the handbrake on these plans.