Like Maruti, Toyota too shrugs off GST, to keep selling hybrids

NEW DELHI: Toyota’s Indian unit said on Tuesday that it would continue to sell hybrid vehicles locally despite the increase in taxes on this category of cars under the single producer levy, the GST.

N Raja, director, at Toyota Kirloskar Motor (TKM), said: “We continue to be positive on hybrids irrespective of the price challenge. There is no change in our plan. We will continuously engage with the government and explain to them. We are hopeful that the government would reconsider it positively.”

The company had previously indicated it may re-evaluate its strategy on hybrid vehicles after an effective tax of 43% has been levied (28% GST, 15% cess). By contrast, smaller petrol and diesel vehicles would attract levies in the range of 29-31%.

Raja added: “We sold 1,300 units of the Camry in 2016. As much as 95% of them were hybrids. We will continue to sell the Camry hybrid as we feel the customer profile in the segment will not be affected with an increase of Rs 3 lakh.

Most of them are CEOs, CFOs and businessmen. Moreover, they all want to try out a new technology and are conscious environmentally.” TKM has already sold around 600 hybrids between January and June this year. Given the price increase, the company said it might have to make more efforts toward educating customers on the technology.