Toyota to stop selling small diesel vehicles in India with change in BS VI norms

Japanese automaker Toyota – which operates in the Indian market through a joint-venture with the Kirloskar Group, Toyota Kirloskar Motor (TKM) is looking at stopping sale of small diesel vehicles in the country post the transition to BS VI emissions standards.

While the
company will continue to offer diesel fuel options in larger utility vehicles
Innova and Fortuner, it will discontinue the 1.3 litre diesel engine it
currently has strapped on the Etios, Etios Cross, Liva and Corolla Altis.

A senior
industry executive in know of the contest said, “While the Etios series is at
the end of its lifecycle, Toyota will discontinue the diesel version of the
Corolla Altis as the cost economics of the product after transition to BS VI
emission standard will not be viable for the consumer.”

“Globally,
Toyota is moving on with hybrid technology in the Altis. In the Indian market
additionally, the executive sedan segment has shrunk to around 500-600 units
per month.

The volumes
and the cost economics do not worth upgrading the diesel engine to higher
emission norms”, said a second person in know who did not wish to be
identified.

The decision
to stop sale of small diesel vehicles, on account of an unviable increase in
cost upon switchover to enhanced emission norms, reflects those of market
leader Maruti Suzuki and French carmaker Renault who too have announced plans
to discontinue such models.

The newcomer
like MG Motor India also has said it would only make sense for the company to
offer diesel fuel options in vehicles priced over Rs 15 lakh post migration to
BS VI standards.