Toyota Kirloskar Motor has put forward the proposal to its parent company Toyota for a diesel engine facility to be set up in India in order to cater to the increase in demand for diesel car models and to gain from localization of engine supply.
The company like many in the Indian auto industry has seen a growth in the demand for its diesel car models especially for the diesel versions of the Etios sedan and the Etios Liva hatchback which accounted for 70 percent of the total sales of the two car models.
Currently, the company is already engaged in setting up a petrol engine facility in Bangalore with an investment of Rs 500 crore.
Other automakers in India are also evaluating their plans for diesel engine capacity expansion in light of the surge in demand for diesel cars. Maruti Suzuki India has already announced an investment of Rs 1,700 crore for setting up a diesel engine plant at its Gurgaon facility.
