India would have got to see more hybrid models from Toyota if it wouldn’t need to take this step.

2015 Toyota Camry Hybrid Review
Toyota started the assembly facility of the Camry hybrid 5 years back

The implementation of the new GST (Goods and Services Tax) slab brought good days to some of the manufacturers but a few others also suffered. Among the sufferers is the Toyota who, in the wake of high GST and cess application, has to discontinue the production of the Camry hybrid in India. After the new tax format being operational, the price of the Toyota Camry hybrid went from Rs. 32 lakhs to all the way to whopping Rs. 38 lakhs (both prices ex-showroom, Delhi) which is a considerable rise and gives a fair reason to prospective buyers to move away from buying it.

Looking closely at the new tax scheme, it is observed that luxury cars are being imposed with 28 percent GST and 15 percent cess. This sudden surge in the taxation made the price of the Toyota Camry rise by around Rs. 6 lakhs. Due to this, the third quarter sales of the car dropped by 73 percent as compared to the sales in the same period last year and resultantly, Toyota Camry hybrid production stopped by the end of September.

Toyota had initiated a dedicated assembly plant for the hybrid version of the Camry at Bangalore 5 years ago. Such was the demand of the hybrid trim that the firm completely moved its focus towards this type, halting the standard model’s production. In total, the company invested around Rs. 39 crores on this setup which included infrastructure cost along with training, campaign and services. If the company didn’t need to take this step, we would have got to see more hybrid models from the Corolla maker coming to our shores.

Talking about pure electric cars which are still far away from being adopted, these cars are imposed with as low as 12 percent GST owing to the Indian government’s vision of all-cars-electric by 2030. On the other hand, luxury vehicles were initially made to adhere to 48 percent levy but it was Karnataka’s representative on the GST council whose pleas reduced it by 5 percent. However, that didn’t prove useful as the sudden downfall of the sales made Toyota halt production of the Camry hybrid.

Toyota Camry Hybrid Production

– Luxury vehicles attract 28 percent GST and 15 percent cess
– The new tax scheme increase the Camry hybrid’s price by Rs. 6 lakhs
– The company had to halt production of the hybrid Camry by the end of September 2017
– Toyota has invested around Rs. 39 crores on setting up the assembly facility

2015 Toyota Camry Hybrid Test Drive Review
Half of the Indian sales of the Camry hybrid were recorded in Delhi