The Camry Hybrid production line at Toyota Kirloskar Motor’s Bengaluru plant has come to a halt as a result of the steep 43% GST levied on hybrid cars.
The hybrid variant outsold the petrol version, which is why TKM started local production. But the sales dropped after the price surged on imposition of 28% GST plus the 15% cess – which is on par with luxury cars. Reportedly, the Camry Hybrid production stopped in September as the sales dropped 73% compared to the previous year.
The new Camry Hybrid was launched in India on Feb 2017 at Rs 31,98,500 ex-showroom Delhi, but the car now costs Rs 37,22,300 ex-Delhi.
TKM has invested Rs 15 crore in the Camry hybrid facility in addition to Rs 24 crore on training, campaigns and service. With the change in tax structure, the parent company’s plans to introduce a wide range of hybrids in India has been shelved. Also, Hyundai might not launch its Ioniq hybrid in India.
“We don’t have a business case to persuade our parent company in Japan to step up investments on hybrids in Bengaluru, given the punitive tax structure,” said Shekar Viswanathan, VC, Toyota Kirloskar Motor.
Also Read: Indian Government is not interested in Hybrids
Source: ETAuto
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