Toyota Kirloskar Motor, the Indian subsidiary of the Japanese auto major Toyota will be deliberating on the establishment of a diesel engine plant in India owing to the surging demand for its bestselling models Etios sedan and Etios Liva hatchback.
The 2012-13 Union Budget did not pronounce any additional tax rates on diesel cars, which has triggered the demand for diesel powered cars in the Indian auto industry. Toyota Kirloskar Motor (TKM) has revealed that the sales figures for the Etios and Etios Liva in the year 2011 totaled at 63,575 units out of which around 70 percent pertained to the sale of the diesel variants.
With the rising future sales prospects for diesel run cars in the Indian auto market, the automaker has presented its parent company headquartered at Tokyo with the proposal for setting up diesel engine manufacturing plant in India. The Toyota Motor Corporation is said to be analyzing the proposal and will be soon discussing for the feasibility study for such set up.
At present this 5th largest automaker in India has announced an investment of Rs. 500 crore in petrol engine plant establishment along with the transmission capacity expansion at Bangalore.
Even the competing auto giant, Maruti Suzuki is stepping towards establishment of diesel engine plant at its Gurgaon facility with a huge investment of Rs. 2000 crore.
