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Toyota Innova Crysta to be discontinued in 2027

Tough CAFE 3 targets are forcing Toyota to pivot away from diesel to petrol and hybrid for its MPVs.
2 min read2 Jan '26
Hormazd SorabjeeHormazd Sorabjee
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Toyota Innova Crysta to be discontinued in 2027.
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Toyota will finally pull the plug on the Innova Crysta diesel around March 2027, which would effectively end the era of a model that has defined the Indian MPV space for the better part of two decades. The ladder‑frame MPV with a 2.4‑litre diesel mill, currently sold only with a manual gearbox, was originally meant to exit closer to 2025, but sustained demand and semiconductor constraints on the Innova Hycross prompted Toyota to keep the Crysta in production longer than planned.​ 

Responding to an email query, a Toyota Kirloskar spokesperson said, "We would like to refrain from making any comments on future products. However, Toyota’s product strategy continues to be guided by its multi-pathway approach offering practical, inclusive, and sustainable mobility solutions wherein all powertrain technologies play an important role meeting diverse need of customers across the segments." 

Why the Toyota Innova Crysta’s time is up

Upcoming stringent CAFE 3 norms puts the ladder‑frame diesel MPV at a disadvantage.

The significantly tougher Corporate Average Fuel Economy (CAFE) 3 norms puts a heavy, ladder‑frame diesel MPV at a disadvantage compared to other powertrains from a CO2 emissions perspective. 

Toyota has already drawn a clear line between the strong hybrid-petrol, monocoque Innova Hycross for private buyers and the tougher, fleet‑oriented Crysta. Going forward, Toyota will increasingly push its hybrid portfolio, which benefits from ‘super credits’ that make it easier to meet the tougher CO2 targets of CAFE 3. Under India’s CAFE rules, “super credits” are an accounting boost given to cleaner vehicles when a manufacturer’s fleet CO2 average is calculated. Each strong hybrid is effectively counted as two vehicles in the CAFE calculation, which makes it much easier for a carmaker to hit its fleet CO2 targets if it sells more of these.

In practice, that means every hybrid Innova Hycross Toyota sells pulls the corporate average fuel consumption down twice over, directly helping offset the high CO2 emissions from heavy diesel MPVs and SUVs. It is not clear if the Fortuner diesel will also be axed but what’s for sure is that the Toyota Land Cruiser FJ due in 2029 will have no diesel option.

Filling the vaccum left by the Toyota Innova Crysta 

There is no direct replacement or rival to the Innova Crysta right now.

When the Crysta bows out, it will leave a conspicuous hole in the robust diesel MPV space that Toyota has enjoyed almost uncontested.​ Mahindra and Tata both have strong longitudinal diesel powertrains but no Innova‑style, body‑on‑frame MPV on sale today, while Hyundai has so far toyed with three‑row crossovers rather than a traditional MPV in this mould. However, the Korean brand is looking at launching the Hyundai Staria with heavy localisation, which potentially could plug the hole the Crysta leaves behind. 

With the Crysta’s likely exit window around 2027 drawing closer, the diesel MPVs space is bound to look tempting again in rival boardrooms, potentially nudging them to think beyond SUVs and revisit a more serious MPV play. 

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