Toyota Will Continue Selling Hybrid Cars in India Despite GST Hurdles

2015 Toyota Camry Hybrid Test Ride Review

Toyota confirms that its hybrid car strategy for Indian market remains same; these cars are slapped at 43% GST rate

Toyota will continue bringing and selling hybrid cars in India despite a high GST rate of 43% on these environment friendly vehicles. As it was rumored that the Japanese auto giant might stop selling hybrid cars as an after effect of the high rate of taxation on these cars. But the brand has confirmed it won’t revise the hybrid car strategy for the domestic market. The company claims it will continue selling models like Camry hybrid, Prius from its commitment towards cleaner environment.

Another automobile giant in the Indian market, Maruti Suzuki also confirmed that it won’t stop selling hybrid cars despite 43% tax under the new system implemented from 1st July 2017. The Indo-Japanese automaker sells mild hybrid powertrain equipped cars like Ciaz SHVS and Ertiga SHVS, both of which are very popular here.

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Also read: Maruti Hybrid Cars will Continue on Sale Despite High GST Rate

But, the case is not same for all the brands. Mahindra & Mahindra that offers mild hybrid technology in its popular car like Scorpio SUV has confirmed that it won’t launch any hybrid models further, until the tax rate is lowered. The upcoming Mahindra Scorpio facelift expected to launch later this year won’t get the intelli-hybrid system.

When GST Council revealed the tax rates, several automakers expressed their concern and displeasure over the 43% tax rate on hybrid vehicles that include 15% cess over and above the 28% GST. Interestingly, this new tax rate is same as the luxury cars draw in the country. It was speculated that such a high rate of tax will directly affect the sales of the hybrid cars and therefore the greener mobility plan as well.

Also read: Expected Upcoming Toyota Cars in 2017, 2018

But, despite repeated appeals from the automakers, GST Council has aid the tax rate has been decided after evaluating all the points and it is firm and final. The decision comes in line of Indian government’s strategy to introduce the all-electric mobility by 2032 instead of hybrid cars that are not zero emission vehicles at all.

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Source: ET Auto