Latest Car News in India

Toyota to set up diesel engine plant for Innova, Etios and Fortuner

Enthused with the growth in demand for its diesel car models such as Toyota Etios sedan and Toyota Etios Liva hatchback besides the best selling MUV Toyota Innova, the Japanese car maker has decided to set up new diesel engine plant. Toyota India is reportedly selling 80 percent of its cars in diesel and as per the auto industry pundits, the demand for diesel cars will increase as petrol prices are soon to take an upswing. However, Toyota’s plans were set aback by the dilly dallying attitude of the government over the differential pricing of petrol and diesel. Meanwhile, the government is thinking deeply to put additional taxes on diesel cars. If that happens, a slight dip in demand for diesel cars or say overall sales is in the offing.

In India, Toyota has established itself with the Toyota Qualis that sold like hotcakes and brought fame to this brand that is trusted as highly dependable. Other cars such as Innova also sells well and recently car sales of Etios and Etios Liva have picked up greatly. Also, the car maker is exporting Etios and Etios Liva to other countries from India and thus in such a scenario there is an urgent need of expansion. Already the car maker has increased the capacity of one of its plant to produce engine and transmission for the Etios sisters.

Currently, the car maker imports engine for the Etios sisters, Fortuner SUV and Innova from Japan and Thailand. A local production of the same will not only streamline things but will also bring down the cost of these Toyota cars. Also, by producing diesel car engines in house in India means that Toyota will be slashing the price of its cars including the Etios, Innova and Fortuner. Thus the new plant set up will be beneficial for the car maker as well as car buyers in the country. Meanwhile, Hyundai and Volkswagen also are in the process of setting up diesel car engine plant in India.