Uncertainty over emission,pollution norms create distrust: TKM

Uncertainty of regulations related to the automobile industry in India with regards to emissions norms and pollution control could create 'distrust' and make global investors stay away from investing further in the country, according to the country head of the world's largest car maker Toyota Motor Corporation.
While admitting that the Supreme Court ban on diesel SUVs and cars with engines above 2,000 cc has to be complied with, Toyota Kirloskar Motor Managing Director Naomi Ishii told PTI that such a step was focusing only on a small segment of vehicles that contributed only "0.2 per cent to overall pollution" as a result of which the company has put on hold temporarily its product launch programmes in India.

While stressing that moving to Euro VI was a step in the right direction, he, however said the time period to implement is too short for all models to comply with the norms and many manufacturers may have to drop a number of existing models.
"Even though we have been complying with regulations, due to such kind of sudden changes we may have to give up certain business and that will create distrust from global companies and (increase) uncertainty about India. Because for investors, stability is a must for them to keep investing," Ishii said here on the sidelines of the Auto Expo.

Elaborating his position, Ishii said while Euro VI technology is available, the question was about timing, as parts have to be localised in India.
"To install Euro VI device in the engine compartment you have to change the entire layout. It requires a lot of design change, you have to check the weight balance and performance and it requires a lot of manpower. If you have five/ten models you have to change all the parts of all the models, which requires a lot of manpower and engineers," Ishii said.

He further said, "Due to lack of manpower we may have to give up some of the models, as a industry that will cause a lot of problem in labour situation. We have to slow down in Make in India promotion."

Last month the government had decided to leapfrog to Bharat Stage VI, which is equivalent of Euro VI emission norms, across India to April 2020 by skipping BS V altogether.
Commenting on the uncertainty in India, Ishii said Toyota had prepared for the all-new Innova Crysta, which was unveiled here today but "suddenly there is this ban on diesel engines above 2,000cc" in Delhi-NCR and the company cannot do much about it but decide to sell the product elsewhere in India outside the region.
"We are talking to our headquarters to make available petrol engines for our popular models Fortuner and the Innova, but we are not sure if the ban will stay after March or not," he said.

As a result, he said TKM has put on hold its original product introduction plans for India temporarily "but we will never give up".