GST Effect: Toyota Camry Hybrid Production Comes To A Halt In India

|
Added in: News

Reports suggest that Toyota Kirloskar Motors (TKM) or Toyota India has stopped production of the Camry Hybrid. It is believed that the Camry Hybrid went out of production because the Goods and Services Tax (GST) and the attendant cess has significantly increased the prices of the model.

2015-Toyota-Camry-Hybrid-front-5-600x400

Introduced back in 2013 for a price tag of INR 29.75 lakh, the Toyota Camry Hybrid received a better response as compared to its petrol counterpart until GST was introduced. Prices of the Camry Hybrid saw a substantial rise due to 28% GST and 15% cess for  luxury vehicles. The new tax saw prices of the Camry Hybrid rise by INR 6 lakh, taking the new price tag to INR 38 lakh.

Also read: New 2017 Toyota Corolla Altis Facelift India Review, Price, Images, Mileage, Specs And Features

Production of the Toyota Camry Hybrid was stopped last month. In the end of the September quarter this year, sales of the Camry Hybrid dropped by 73% as compared to the same time frame in the previous year, according to data shared by the company.

Toyota-Camry-Hybrid-Indore-to-Mumbai-via-Mandu-53-600x338

The Camry Hybrid was the first hybrid vehicle to be assembled at Toyota’s plant situated in Bidadi, Karnataka, followed later by the local assembly of the Prius. TKM had invested INR 39 crore for the model, of which INR 15 crore was allocated for the Camry Hybrid facility and INR 24 crore was used for training, campaigns and service. The company had previously revealed its plans to introduce more hybrid variants in India, but with the recent change in the tax structure, these plans are not likely to see the light of day soon.

Source: ET Auto

Leave a Reply

Your email address will not be published. Required fields are marked *