If toyota wanted they could easily come out with a corolla diesel,just look at the range of diesels they have for their UK market.Cant toyota use diesel power for their cars in India.
www.toyota.co.uk
In uk The honda crv,the accord and the civic seem to be sharing the same diesel engine.That accord is giving astounding FE.Can't honda come with diesel engines in India.
www.honda.co.uk
Its suprising that honda the techonlogical giant, as far as cars are concerned doesn't have a single diesel engine in India.Toyota is only in the diesel segment due to the innova.Cant they figure out we Indians are biased towards diesel.Even maruti has waken up to the fact that diesel is fast catching up in India and if not in-house atleast is going to provide fiat diesel engines.