Hit by diesel ban, Toyota stares at flat year ahead

Japanese auto major Toyota is expecting a flat sales performance in the Indian market in the current calendar year even after the removal of the ban on diesel vehicles in the National Capital Region (NCR). The firm will launch a refreshed variant of Etios next month.

“We might just be able to maintain last year’s volume since the impact of the ban lasted for almost eight months. We had grown sales by five per cent last year,” said N Raja, director and senior vice-president (sales and marketing) at Toyota’s India operations. Toyota sold 139,815 passenger vehicles in 2015. It is estimated to have lost sales of 8,500 units of Innova and Fortuner because of the diesel ban in NCR.

The Supreme Court on August 12 lifted the ban on sales of diesel vehicles with engine capacity of 2,000cc and above in NC R. It had imposed the ban on December 16 last year to address the rising pollution in the capital region. Toyota was worst hit by this ban as sales of two of its top selling models — Fortuner and Innova — were stopped in NCR. The NCR accounted for one-tenth of its Fortuner sales and eight per cent of the Innova sales. In May this year, the company launched the new Innova Crysta, which has helped it arrest the dip in sales. Early this month, it also introduced the petrol Innova. Toyota is the fifth largest player in the 2.8 mn unit (annual) Indian passenger vehicle market with a share of five per cent.

The waiting period for the new Innova is currently at two to three months, said Raja. “Since the NCR dealers have suffered volume loss for eight months, we’ll have to pull out cars from other areas and supply to NCR,” he added. The ban has been removed after companies like Toyota and Mercedes-Benz agreed to pay one per cent “environment compensatory charge” on ex-showroom prices of such vehicles. The money will be paid by buyers and will be deposited in a nationalised bank account opened by the Central Pollution Control Board.

The Supreme Court on August 12 lifted the ban on sales of diesel vehicles with engine capacity of 2,000cc and above in NCR