Toyota too jumps on the ‘diesel engine plant in India’ bandwagon

India is going crazy after diesel engine cars and much supportive of this craze are the car-makers present in the country. Since the government has voted against the additional tax on diesel in the union budget 2012-13, auto makers have been forced to either import diesel engines from outside or plan a set up of diesel engine plant in the country to meet the growing demand of diesel vehicles and cut down on the huge waiting periods. Owing to the saving of diesel from extra tax in the budget this year, after Maruti and Hyundai, Toyota India has also decided to build a diesel engine factory here; the Indian subsidiary, Toyota Kirloskar Motors has also communicated this intention to the parent company Toyota, Japan. The Etios twins, Toyota Etios sedan and Toyota Liva hatchback have witnessed an increase in the demand of their diesel variants and the total demand of their diesel cars in India has seen a growth of 70%.

This humongous growth figure has triggered the company’s decision of coming up with their own diesel engine factory in the country. Company’s close sources have mentioned that Toyota India has petitioned at the Toyota’s headquarters in Tokyo regarding the development of a diesel engine plant in India to face the rising demand of diesel cars. The close source also added that the company is still in the process of analyzing the proposal so there has been no response as yet, but here in India, the company officials are hopeful that they will soon receive a positive response from Japan regarding the localized diesel engine production. The biggest car maker of the country Maruti Suzuki India had announced an investment of around Rs. 2,000 crore for the development of a diesel engine plant in Gurgaon by 2014 which would have a capacity of producing 3,00,000 units per year. 

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