The impact of the new Goods and Services Tax (GST) regime and attendant cess have prompted Toyota Kirloskar Motor to stop producing the hybrid Camry at its manufacturing site in Bengaluru, the company told Economic Times.
According to the report, the Bengaluru assembly line stopped producing the Camry at the end of September. As of now, Camry is still being sold as the car’s inventories haven’t completely dried up as yet.
“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,” Toyota Kirloskar Motor Vice Chairman Shekar Viswanathan told the paper.
Camry is a ‘strong’ hybrid, which can run in purely electric mode, while a ‘mild’ hybrid can’t.
Currently, Toyota has 34 hybrid models. “We wanted to assemble more hybrids that behave like an electric vehicle,” Viswanathan said. He added that internal combustion engines were only installed to reduce consumers’ anxiety.
Source : http://www.moneycontrol.com/news/automobile/high-gst-cess-force-toyota-to-stop-producing-hybrid-camry-at-bengaluru-plant-2417273.html