New Delhi, Jun 9: Hybrid vehicle sales in India are restricted by high taxation and unless it is reduced, volumes of such cars will remain low, a top official of Toyota Kirloskar Motor said.
The company, which has been advocating technology agnostic approach towards popularisation of clean energy fuels, said under the current circumstances further investments on hybrid vehicles in India are not feasible.
“If we have to popularise hybrid technology in India we need to look at that taxation system,” Toyota Kirloskar Motor (TKM) Managing Director Masakazu Yoshimura told in an interview.
The total tax incidence on hybrid vehicles is 43 per cent, which is inclusive of GST, he said.
TKM currently sells its Camry hybrid priced at Rs 37.50 lakh (ex-showroom Delhi). It is assembled at the company’s Bidadi plant in Karnataka.
When asked if the current tax structure is discouraging Toyota from launching more hybrids in India, he said,”We want to bring, we have products (in Toyota’s global portfolio) (but) at the moment taxation system is not favourable”.
Toyota has maintained that while the future of eco-friendly mobility lies in electric vehicles, road towards full electric vehicles (EVs) will have to be bridged through hybrids which needs support from the government.
If customers realise the benefits of hybrid technology, it will become popular and then only it becomes feasible for investments, Yoshimura added.
He said the company has been seeking clarity from the government on the matter.
“Look at China, they incentivised hybrids, then PHEVs (plug-in hybrid electric vehicle) and EVs. Now, they are looking at FCVs (fuel cell vehicles). Strategically they are putting (efforts),” Yoshimura said.