Toyota may discontinue the Innova Crysta diesel by 2027 due to CAFE norms
Toyota is expected to discontinue the diesel powered Innova Crysta in India by around March 2027, marking the end of one of the most influential MPVs the country has seen over the last two decades. The move is understood to be driven largely by India’s upcoming Corporate Average Fuel Economy (CAFE) Phase 3 regulations, which significantly tighten fleet-level CO₂ emission targets.
The ladder-frame Innova Crysta, currently sold only with a 2.4-litre diesel engine and a manual transmission, was earlier expected to be phased out closer to 2025. However, consistent demand from private and fleet buyers, along with supply-side constraints affecting the newer Innova Hycross, reportedly led Toyota to extend the Crysta’s production lifecycle. An email query sent to Toyota Kirloskar Motor did not receive a response at the time of publishing.
CAFE 3 norms are considerably more stringent than previous phases and place heavier, body-on-frame diesel vehicles at a disadvantage from a fleet emissions standpoint. For manufacturers, meeting these norms requires lowering the overall average CO₂ output across all vehicles sold.
Toyota has already begun reshaping its MPV strategy by clearly separating roles within the Innova line-up. The monocoque, strong-hybrid Innova Hycross is positioned primarily for private buyers, while the diesel Crysta continues to cater to more demanding commercial and high-usage applications. As regulations tighten, that divide becomes harder to sustain.
A key factor working in favour of Toyota’s hybrid models is the availability of so-called “super credits” under India’s CAFE framework. These credits effectively allow cleaner vehicles such as strong hybrids to count more heavily when calculating a manufacturer’s average emissions. In simple terms, selling more hybrid MPVs helps offset the higher CO₂ output of heavier diesel vehicles.
This approach explains Toyota’s increasing emphasis on hybrid powertrains across its portfolio. While there is no official word on the future of the diesel Toyota Fortuner, Toyota has already indicated that the upcoming Toyota Land Cruiser FJ, expected later in the decade, will not feature a diesel option.
When the Innova Crysta eventually exits, it will leave behind a segment that currently has no direct successor. Despite having capable longitudinal diesel engines, neither Mahindra nor Tata offers a body-on-frame MPV that mirrors the Innova Crysta’s blend of durability, comfort and reliability. Hyundai, meanwhile, has focused more on three-row crossovers rather than traditional MPVs.
That could change. Hyundai is reportedly evaluating a heavily localised version of the Hyundai Staria for India, which could potentially address the vacuum left by the Crysta. Whether it adopts a diesel or alternative powertrain strategy remains to be seen.
With the expected 2027 timeline drawing closer, the disappearance of the Innova Crysta diesel could prompt rival manufacturers to reconsider the long-neglected MPV space. As SUVs continue to dominate headlines, the exit of a proven workhorse may quietly reset priorities inside competing boardrooms.
