Toyota Kirloskar Motors (TKM), the joint venture (JV) between the Japanese automaker Toyota and the Indian Kirloskar Group has put forward a proposal to set up a diesel engine manufacturing plant in India. The carmaker has proposed to the Japanese carmaker Toyota to consider a diesel engine production facility in light of the increase in demand for diesel vehicles in India.
The carmaker has a petrol engine plant in Bangalore which was set up in the year 2011 at an investment of Rs 500 crore in collaboration with Toyota Kirloskar Auto Parts. With the rise in price of the petrol fuel and the resulting increase in demand for diesel powered cars in India, the Indian JV has proposed setting up a diesel engine plant.
The Japanese company is expected to wait and watch until the demand stabilizes and a decision will be taken according to the demand situation for diesel cars in the Indian market.