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Toyota to continue selling hybrids without change in plans despite heavy GST

Toyota to continue selling hybrids without change in plans despite heavy GST
Nikhil Puthran Nikhil Puthran Tuesday 11 July 2017, 20:52 PM

Although GST implementation has resulted in price drop for petrol and diesel cars in the country, hybrids have not been so lucky. Despite heavy taxes, Toyota Kirloskar Motor (TKM) has stated that the company will not consider changing plans for its hybrid cars. The company’s popular seller, the Camry which was once priced at Rs 33 lakh will now cost more by about Rs 3 lakh.   

Under GST, hybrid cars attract the current 28 per cent, but it is also liable to pay the additional 15 per cent cess, thereby bringing the total to 43 per cent. Previously, hybrid cars attracted a tax rate of 30.3 per cent. Although the price hike will set back sales for the Japanese manufacturer in India, the company will continue attracting customers without a change in plan. Speaking about this Toyota Kirloskar Motor Senior Vice President and Director, N Raja said to media, “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 environment. 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.”

Toyota reportedly only delivered about 2,000 units to dealers in June. As reports indicate, it was done to avoid piling up of stocks at dealerships over GST regulation confusion among customers. Reports further indicate that in previous months, the company delivered around 12,000 units and from July onwards will once again resume normal deliveries. 

 

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