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Toyota Reveals Its Plan On Hybrid Cars In India After GST
Toyota is keen on selling hybrid cars in India despite high GST.
Toyota Kirloskar Motor announced that it would continue to sell hybrid vehicles in India despite the increase in tax through the new Goods and Service Tax (GST) on these vehicles.
Under the new GST, hybrid cars attract GST of 28 percent plus 15 percent cess (43 percent in total) similar to luxury cars in India. However, the previous taxation system had attracted a tax rate of 30.3 percent for hybrids in India. The increase of close to 13 percent will directly increase the price of hybrid cars in the country.
Prices of Toyota Camry, the company's popular hybrid sedan, have gone up by an average of Rs 3 lakh compared to the previous retail price.
The Camry hybrid is assembled in Toyota's Bengaluru plant, now retails at Rs 35 lakh compared to Rs 32 lakh earlier. Toyota, which was forced to increase prices of its hybrid vehicles, admits higher tax will harm its sales but thinks such vehicles are essential to reducing overall pollution.
"We will continue with this journey of hybrid vehicles in India. Our commitment remains the same, and we believe that this technology is good for the environment," Toyota Kirloskar Motor Senior Vice President and Director N Raja told PTI.
He admitted that the higher tax under the new GST has come as a setback to the company, but would continue with its pursuit to find new customers.
"What has happened with GST is that hybrid customers, who are mostly large business owners are busy sorting out their businesses to comply with the new tax system. So, it's taking time for enquiries to convert into deliveries, " Raja said.
Toyota also sells the Prius hybrid car in India, and that too will witness a price hike under the new GST. The Camry hybrid accounted for more than 90 percent of total Camry sales sine it was launched in India.
"What has happened with GST is that hybrid customers, who are mostly large business owners are busy sorting out their businesses to comply with the new tax system. So, it's taking time for enquiries to convert into deliveries, " Raja said.
In June, the company delivered about 2,000 units to its dealers to avoid stockpile up in the run-up to its implementation. In the prior months, the company delivered around 12,000 units.
Toyota though is confident that the sales will improve in the coming days as the company has resumed regular delivery of vehicles to dealerships.
DriveSpark Thinks!
While electric cars are yet to reach the mass-market or the volume market, the hybrid vehicles do contribute to the reduction of carbon imprint in the environment.
