Japanese automaker Toyota recently restarted the production of the Camry Hybrid in India. Now, The Telegraph reports that Toyota might discontinue the Camry Hybrid in India due to the high rate of tax on hybrid vehicles in the country.
Managing Director of Toyota Kirloskar Motor, Akito Tachibana said that if the government doesn't revise the tax on hybrid vehicles, the company will discontinue the Camry Hybrid in India. Toyota might retail the conventional Camry without the hybrid system.
Currently, the hybrid vehicles in India attract a high rate of tax which stands at 43 percent. Due to the increase in the tax, prices have gone up and the sales have dipped.
Before the implementation of the new tax slab, Toyota sold 100 units of Camry Hybrid in a month. Now, the sales have dropped to just 35 units a month which is a 65 percent decline in the sales.
The higher tax rates on hybrid vehicles were implemented to promote electric vehicles. The government had a mission to shift to all-electric vehicles by 2030, which was later limited to only commercial vehicles. But the hybrid vehicles are considered as an alternative option until electric vehicles become mainstream.
Tachibana also said that the changing tax rates make it very difficult for a manufacturer to set long-term plans. He also feels that the hybrid vehicles will play a vital role in reducing carbon emissions.
India lacks necessary infrastructure for electric vehicles and the biggest challenge would be the charging stations. So, Tachibana believes that the hybrid vehicles are the best option for India to reduce pollution caused by conventional vehicles.
Thoughts On The Discontinuation Of Toyota Camry Hybrid
Currently, Toyota offers the Camry and the Prius hybrid cars in the Indian market. But the sales of the hybrid cars have been hampered by the high tax rates. Now, Toyota is planning to discontinue the Camry Hybrid in India. We feel that government should reduce the tax on hybrid vehicles as it plays an important role in reducing carbon emissions.