Will Continue To Sell Hybrid Cars: Toyota Kirloskar Motor
The disruption caused by Goods and Service Tax (GST) to hybrid vehicles is now a well-known fact in the auto industry. The humongous increase in tax rate has forced manufacturers to increase the selling prices of these vehicles, making them less attractive for buyers.
Toyota Kirloskar Motor which sells high-end hybrid-powered sedan, Camry on Tuesday (July 11) said that it will continue to sell the hybrid vehicle in India.
"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 said.
Under the new tax regime, prices of Camry has gone up by an average of Rs 3 lakh. In some states, the price is higher by Rs 5 lakh. The model, which competes with Honda Accord (hybrid) is assembled at the company's Bengaluru plant, now costs around Rs 35 lakh as against Rs 33 lakh earlier.
Under GST, the tax rate on hybrid cars is fixed at 28 per cent plus a cess of 15 per cent is charges on them. This put the hybrid cars in the same league with large luxury cars and SUVs that also attracts a total of 43 per cent tax under the new tax regime.
Country’s largest carmaker Maruti Suzuki India (MSIL) which has a top selling model, the mid-size Ciaz hybrid, in its line-up also said that despite the price rise they will continue to sell hybrid technology cars. However, not every carmaker is following a similar suit.
Mahindra & Mahindra, India’s largest manufacturer of sport utility vehicles (SUVs) is likely to phase out its only vehicle with hybrid technology – the Scorpio mild hybrid – after a sharp increase in the tax rate.
“Hybrid has become less attractive, and difficult to justify,” M&M’s Managing Director Pawan Goenka said. He added that the higher costs would have to be borne partly by auto manufacturers as the entire burden cannot be passed on to consumers.
On the aftereffect of GST, Raja of Toyota said that From July they have resumed normal delivery and expect to make up for the loss in June in the next three months. Last month, Toyota limited its supply to dealers which resulted in 84 per cent decline in domestic sales.
The carmaker today launched smartphone application, Toyota Connect India to provide assistance to its customers for service, roadside assistance and navigation.
