Toyota To Break Investment Impasse In India
Leading the pack of carmakers that have been up in arms against India’s uncertain regulatory issues regarding diesel cars, Toyota Motor Corporation
Leading the pack of carmakers that have been up in arms against India’s uncertain regulatory issues regarding diesel cars, Toyota Motor Corporation is still not in any rush to roll out new cars in the country despite the Supreme Court lifting the blanket ban earlier this month. But it has now relaxed its stand on freezing all fresh investments in India.
The Japanese auto major will take it slow before making its next move, Toyota Motor Corporation CEO (Asia, Middle East & North Africa region), Hiroyuki Fukui told PTI. "In India we have the emissions, the regulations … We understand it is important for the health of the people. We are trying to find an amicable solution for sustainable growth. That is why I say step by step," he added.
Fukui sounded softer than how other company officials did on earlier occasions while commenting on Toyota’s future plans for India. "We will try to focus more on India, to introduce more cars in India that fit Indian people. However, our resources are limited. We have so many tough competitors. We will try to go step by step to be accepted by Indian consumers," he said.
In India, the company has twin production facilities in Bengaluru – in association with Kirloskar Motor – with a total annual capacity of more than three lakh units. However, with the ban on registration of diesel cars with engine displacement of 2000cc and above in Delhi lasting for close to eight months since December last year, the company is operating on only 55 per cent of its total bandwidth.
Stating that Toyota would like to be a good corporate citizen, Fukui said, "India is one of the promising markets in Asia. Our production is only half used. We have huge potential." The automaker has been among the worst hit by the ban, with Delhi contributing 7 to 8 per cent of Toyota’s total business in India.