Toyota Kirloskar Motor (TKM), the Indian subsidiary of the Japanese automaker, has announced that it is temporarily suspending the dispatch of three of its models – Innova Crysta, Fortuner and Hilux – in the country after “irregularities” were found in the certification tests for the diesel powertrain.
What are the irregularities?
According to a statement by Toyota Industries Corporation (TICO), a company affiliated with Toyota Motor Corporation (TMC), on January 29, 2024, irregularities in horsepower output certification tests were found on three diesel engine models. These engines are used in Innova Crysta, Fortuner and Hilux in India, as well as in ten other models globally, including six in Japan.
The irregularities concern the smoothing of power and torque curves but did not lead to any over-stating or over-claims on horsepower, torque or other powertrain related values, TICO said. The issue does not have any impact on the emissions or safety of the affected vehicles, it added.
What is Toyota doing about it?
Toyota said that it is working with relevant authorities to re-confirm the data used for the certification of the affected vehicles. As such, TKM also decided to temporarily halt the dispatch of the affected vehicles in India until further notice.
However, TKM said that it would continue to take new orders for the three models and explain to customers about the condition of the vehicles that have already been dispatched but have not yet been delivered. Customers who opt to receive their vehicles will be allowed to proceed with registration and delivery, it said.
TKM also assured its existing customers that their vehicles are unaffected by these irregularities, as this did not result in any variations in horsepower, torque or other powertrain-related values. Additionally, this has not compromised the emissions or safety of their vehicles, it said.
“Nevertheless, TKM sincerely apologises for any inconvenience and concern this irregularity may cause to our customers and other stakeholders,” it said.
How will this affect Toyota’s sales in India?
The Innova Crysta, Fortuner and Hilux account for almost a third of TKM’s total sales in India. In December 2023, TKM sold 13,681 units in the domestic market, out of which 4,386 units were Innova Crysta, 2,112 units were Fortuner and 1,021 units were Hilux.
The suspension of dispatch of these models could affect TKM’s sales performance in January 2024 and beyond, depending on how long it takes to resolve the issue and resume normal operations. TKM is already facing stiff competition from other players in the Indian market, such as Maruti Suzuki, Hyundai, Kia, Mahindra and Tata Motors.
The diesel engine irregularities could also dent Toyota’s reputation as a reliable and trustworthy brand in India, where diesel vehicles are still popular among customers despite the government’s push for cleaner fuels and electric vehicles.