Toyota Kirloskar Motor (TKM), the Indian subsidiary of the Japanese automobile manufacturer Toyota is considering setting up a diesel engine plant in India in order to cut on import duties on diesel engine imports. Diesel powered cars account for about 80 percent of the company’s total sales in India.
The plan for a diesel engine plant has been on the table since 2011 but has been delayed due to lack of clarity on diesel pricing policy of the Indian government and apprehensions about the proposed additional tax on diesel powered vehicles.
According to Mr. Sandeep Singh Deputy Managing Director (Marketing) TKM, the shift in demand from petrol to diesel driven cars has compelled the company to consider setting up a diesel engine plant in India instead of importing the engines from Japan and Thailand. Feasibility study on the potential of diesel engines in the Indian automobile industry is underway, added Mr. Singh.
