Toyota Stops Camry Hybrid Production Due To GST Price Hike

2015 Toyota Camry Hybrid Test Ride Review

Toyota stopped Camry Hybrid production in India due to high price resulting in sales drop; draws 43% of total tax incidence

Toyota Camry hybrid appears to be the latest casualty of the high pricing and sales decline in post GST era. The Japanese automaker has stopped production of this hybrid sedan in its Bengaluru plant citing the reason of sales drop due to high price caused by 43% of total tax incidence that includes 15% cess over and above 28% GST.

Pricing of the sedan increased to Rs. 38 lakh from Rs. 32 lakh due to the implementation of GST and it directly affected the sales of this car. Production halt of Camry hybrid certainly comes as a big blow for the greener mobility initiative in the country, considering the fact that Toyota has been pioneer in introducing hybrid powertrain technology here. The Camry hybrid saw a positive response lately as the awareness about greener powertrain technology increased.

Toyota Camry Hybrid front

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As the auto major claims, sales of this hybrid sedan declined by 73% in September 2017 compared to the same month last year. The Camry hybrid production facility was launched five years ago at an expense of Rs. 15 crore along with Rs. 24 crore for training purpose. The brand stopped manufacturing the regular model as the demand for the greener version grew gradually.

Toyota is among the brand that shelved the plan of launching hybrid vehicles in the country considering the high rate of tax imposed on these vehicles in post GST era. The brand had plan to roll out a wide range of hybrid models in India, but with 28% GST and the attendant cess with it, the Japanese company decided to scrap the plan. Not only Toyota, Mahindra too scrapped its plan of introducing hybrid cars due to the GST.

2015 Toyota Camry Hybrid interiors

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While several hybrid cars available in India come as mild hybrid models that can’t run on full electric model, Toyota Camry is different from them. It is a strong hybrid model and it can run on full electric mode. However, that doesn’t change the tax amount to the lenient GST rate for the electric vehicles. While the hybrid models are slapped with 28% GST, the EVs draw 12% GST only in line with the government’s strategy to introduce all-electric mobility across the country by 2030.

Toyota Camry Hybrid Gallery

Source: ETAuto