Toyota Kirloskar Motor (TKM), one of the key auto manufacturer in the country has stated that the company is not considering change in plans for hybrid vehicles despite heavy taxes under GST. The Camry sedan which was priced at around Rs 33 lakh earlier in Bengaluru has now been hiked by Rs 3 lakh.
Hybrid cars attract the current 28 per cent GST, but it is also liable for additional 15 per cent cess which brings it to a total of 43 per cent. Previously, hybrid cars attracted a tax rate of 30.3 per cent. Although the price hike will set back sales for the Japanese manufacturer in India, the company will continue attracting customers without a change in plan. Speaking about this Toyota Kirloskar Motor Senior Vice President and Director, N Raja said to media, “We will continue with this journey of hybrid vehicles in India. Our commitment remains the same and we believe that this technology is good for environment. What has happened with GST is that hybrid customers, who are mostly large business owners are busy sorting out their businesses to comply with the new tax system. So, it’s taking time for enquiries to convert into deliveries.”
Reports indicate that back in June, Toyota delivered only about 2,000 units to its dealers. This was however done to avoid piling up of stocks due to confusion over GST implementation among buyers. In the previous months the company has reportedly delivered around 12,000 units and from July will once again resume its normal delivery.