Monday, January 09, 2012
By Manoj Kumawat
Toyota's diesel engine plant will depend on diesel subsidy, this budget
The Japan based auto giant in the country Toyota Motors is mulling over to set up diesel engine manufacturing plant in India. But the company is waiting for the announcement of subsidy on the diesel fuel by Central Government in upcoming budget in the month of March this year. Toyota Motors has already invested around INR 500 Crore in the establishment of petrol power-train factories in Bangalore recently.
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Mr. Shekar Viswanathan, the Deputy Managing Director for commercial vehicles at Toyota Motors said that the final call of the diesel engine setup will be taken after the March Budget comes into picture. He was addressing the media persons at the 2012 Delhi Auto Expo, where Toyota launched facelifted variants of New Toyota Innova MPV and Toyota Fortuner SUV.
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The consideration of diesel engine production unit came in with the increasing demand of it since the launch of diesel variants of Etios range that comprises of Toyota Etios sedan and Toyota Etios Liva hatchback. These two vehicles had been clocking some amazing sales figures in recent times.
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The same stand is taken by country’s largest passenger carmaker Maruti Suzuki India (MSI) on the setup of diesel power-train manufacturing plants in India. The Managing Director and Chief Executive Officer (CEO) Mr. Shinzo Nakanishi said that until there is a transparency on the diesel subsidy policy by Indian government this March budget there won’t be any fresh investments in the country on diesel part.
MSI had earlier unveiled its awaited compact MPV Maruti Ertiga along with a concept SUV in the form Maruti XA Alpha that is expected to debut in India next year.
