Toyota’s Plan to Sell Diesel Cars

Automobile giant Toyota Kirloskar Motor plans to continue selling diesel model cars in India in spite of the approaching hike in prices of these vehicles.

The Japanese automaker has even invested in a plant in India to make diesel engines, complying with the upcoming norms, at a relatively low price. This decision to produce such diesel engines comes across as a clever move by the company at a time when upgrading existing diesel engines has become a costlier affair.

Prices of vehicles complying with BS-VI emission norms are expected to rise from the beginning of the next financial year, in spite of which the Automobile manufacturer has plans to continue producing such vehicles.

What are BS VI emission norms?

The BS VI or the Bharat Stage VI emission norms are the sixth mandate for vehicular emissions which will help curb air pollution in India. As per these norms, engine emissions must contain five times fewer sulphur traces, with a decrease in 70 per cent nitrogen oxide level in case of diesel and 25 per cent in petrol engines as compared to the earlier limits.

Keeping in mind the Modi Government’s ‘Make in India’, the Far-Eastern Automaker invested in a manufacturing plant here in India which, to an extent, can be looked upon as a solution to the problem of job cuts in the auto sector.

The plant will not only create employment opportunities, but also start supply of more such vehicles into the stagnant market, which may be required at the moment to keep up with demands in the approaching festive season. Around this time of the year is when automobile sales are traditionally expected to pick up.

The automobile sector in India had witnessed 3,50,000 lay-offs earlier this year which lead to a recession-like situation. In order to tackle the sluggish condition, Indian manufacturers halted production to keep costs in check.

Sale of passenger vehicles had also seen a drastic and steep fall, at a rate not experienced in the last 20 years. This circumstantially leads to both job cuts and partial shutdown of manufacturing units for quite some time, affecting even the most established players of the industry.

Rifa Deka,

Guwahati.