Toyota has stated that the sudden price rise of the hybrid cars under the recently constructed GST regime is making it difficult for them to carry on with the idea of producing hybrid vehicles. However, the company has stated that they would decide the situation as per the needs of the business. In this context, it is interesting to note that Toyota Kirloskar Motor has said that they would cut down on the production of the hybrid vehicles as they would incur the loss if they carry on with the production process. Toyota is a joint venture between the Japanese automaker and the Kirloskar Group.
According to them, the sudden price rise of significant materials required in the designing of a hybrid vehicle has skyrocketed because GST has been introduced. On the other hand, the sudden increase in price in the case of hybrid vehicles under the current rules and regulations of GST have also impacted the sale of the premium sedan. Due to the shortage in the demands of the customers, Toyota has slowed down the production of the Camry Hybrid Cars. As per the official spokesperson of Toyota, they would monitor the situation and would take decisions accordingly.
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However, they have added that Camry Hybrid would continue to be an essential part of the products lineup in India. The company usually follows the in time approach and learn inventory so that the entire production procedure is being regulated by demand and supply laws. Under the current GST regime, it is important to note that the hybrid vehicles have been put in the same category like that of the big diesel and petrol cars.
According to many ardent fans of automobiles, the hybrid car market of India has witnessed a considerable slump in growth. It is so because the current GST regime restricts the car makers to dish out cars that would be profitable for both the buyers and company. Back in 2013, Toyota has launched the Camry Hybrid at a price of Rs. 30 lakhs. It was available in the ex-showroom of Delhi. It is also interesting to note that it was the first hybrid car that was to be assembled in the Bangalore unit of Toyota. Moreover, if launched, it had been the first hybrid car in India.
However, all these have changed with the application of 30% GST. Moreover, the 15 percent excess for luxury cars is another primary reason behind the declining popularity of these hybrid vehicles. The hybrid version of the car made by Toyota went out of the production line in September. On the other hand, the sales of this hybrid sedan declined rapidly. Toyota has invested a significant amount of money wherein a majority of this money was spent in the facility of the Camry Hybrid Car.
It was probable that if the situations were friendly, Toyota would have produced more cars of hybrid technology. However, it remains to be seen that how Toyota manages to tackle the adversities.