Camry Hybrid: GST forces Toyota to halt production

Toyota Kirloskar Motors has halted the production of the Camry Hybrid. The decision was reportedly taken following the implementation of the goods and services tax (GST) in September, which has made it unviable for the company to continue with the production of this model. Meanwhile, sales will continue until stocks run out.

Demand for the Camry Hybrid had increased initially but the revisions in the GST structure saw the sales drop. Toyota's hybrid sales dropped by 73% at the end of Q3 2017 compared to the same period last year.

Unlike electric cars which attract 12% GST, hybrids are imposed with 28% GST in addition to a 15% luxury car cess. This means, the Camry Hybrid which was sold for Rs. 32 lakh (ex-showroom, Delhi) is now priced at Rs. 38 lakh. The price gap between the regular models and hybrids has also widened from Rs. 1.3 lakh to Rs. 7.5 lakh. Also, a 17-year break-even period for a hybrid doesn't make sense for the customer.

The 2017 Camry Hybrid was launched in India in February 2017. The car is powered by a 2.5-litre, 4-cylinder petrol engine which is paired with an electric motor and delivers a combined output of 202 BHP. The engine is mated to an e-CVT gearbox. The hybrid model is claimed to deliver 19.16 km/l.

Source: Economic Times