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.