Toyota Kirlsokar Motor, the Indian unit of Japanese auto maker Toyota Corp, said the ban on sale of diesel vehicles with engine capacity above 2,000 cc in Delhi and NCR region, would reflect in flat sales for the company this year.
The Supreme Court imposed the ban in December 2015 to check air pollution in the NCR, which includes Delhi. The region accounts for 13 per cent of its sales.
TKM Vice-Chairman Vikram Kirloskar said that the company expects sales to be around 140,00 vehicles this year, the same as in 2015-16.
"We could have grown about 10-12% this year but will not due to Delhi," said Kirloskar after the launch of Rs 1,100 crore engine plant at Bidadi, its factory on the outskirts of Bengaluru.
He said the ban did not offer solutions to the pollution levels of Delhi and it was dust, trucks and two wheelers that are main pollutants.
"We realize diesel engine technology will remain an integral part of every automaker with strict fuel efficiency norms being implemented in India, therefore this engine project will strengthen our diesel business in the country marking Toyota's first diesel manufacturing plant in India," Kirloskar said in a statement about the company's diesel engine plans. ""We hope to grow together with the local community and ramp up the process of manufacturing cars in India with readily available diesel engines made from our new Bengaluru plant."
The plant employs over 1,200 people in the region.