GST hits Toyota hybrid sale

GST hits Toyota hybrid sale

Calcutta: Toyota has witnessed a 75 per cent drop in sales of its Camry hybrids after a GST of 43 per cent on such models.

The high tax has prompted Toyota Kirloskar Motor Pvt Ltd (TKMPL) not to introduce any hybrid options for its new sedan Yaris. “The GST taxation on hybrids is a discouragement to the technology. Yet the government’s plan of electrification cannot happen overnight. Hybrids are the stepping stone to the goal of e-mobility,” Raju Ketkale, senior vice-president and director of TKMPL, had said at the launch of the Yaris in the city.

Hybrids run on both gasoline and electric motor, leading to almost 50 per cent less fuel consumption.

The Japanese major has been adversely hit by many government regulations such as the decision to ban large diesel cars and the high taxation on SUVs, large sedans and hybrids.

Parent company Toyota is now trying out a technology and badge-sharing deal with Suzuki to help it make the hybrid popular. While Toyota will lend its electric and hybrid know-how to Suzuki, the latter will allow Toyota to crossbadge its models and sell in India.

Source: https://www.telegraphindia.com/business/gst-hits-toyota-hybrid-sale-233538

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