Toyota RAV4 Hybrid Front
It is now unclear if the RAV4 will make it to India or not

Toyota has revealed that its India products in the near future will only consist of cross-badged ones sourced from Maruti Suzuki and not those from its own global portfolio.

Vice Chairman of Toyota Kirloskar Motor (TKM), Shekar Viswanathan revealed that the above, but asserted that the automaker will not leave the Indian market.

The decision might have been taken purely keeping costs in mind, since, despite having relatively good products in its range, Toyota’s sales are limited in India. The automaker believes taxes play a big part in it as it was evident with how the firm’s vice chairman for India felt about the current government taxation policy.

“Hybrids are the mainstay of our portfolio and at 43 percent, even if people buy, volumes will be very less. We cannot manufacture them locally, we will have to import them. Hybrid vehicle taxation should be taken to the pre-GST level of 28 percent and a further reduction to 18 percent in line with EVs which are taxed at 5 percent,” he said.

“A hybrid vehicle functions as an EV, but has no need for expensive charging infrastructure. It’s energy source for the battery is gasoline whereas for EVs, it is electricity drawn from the grid,” the TKM vice chairman stated, adding that the GST rate for petrol cars should be brought down to 18 percent from the current 28 percent tax slab.

Last year, Toyota sold 1.14 lakh units, which is not even half the number it can manufacture at its Indian facilities in a year. Thus, the carmaker sees no need for further investment in India even for a new plant, but at the same time, it plans to soldier on.

“We will not exit India. We can only invest in a new plant when we utilise the current capacity. At this level of taxation, we don’t see that happening soon,” Shekar Viswanathan claimed.

Maruti already supplies its Baleno to Toyota which then rebadges it as the Glanza and the arrangement will see the Vitara Brezza renamed and sold as the Urban Cruiser in the Indian market very soon.

Now this development has twisted the plot by a big margin, since it was only last month that it was reported that the number of Toyota India products will be increased to house up to 16 models by 2023.

This included bringing to India the brand’s own Corolla Cross, Hilux and RAV4 models and we had even spotted the Hilux very recently on our roads. It is now unclear if these cars will ever make it to India.

Toyota India Products

  • Toyota’s India product portfolio not to house its own models in the future
  • The Japanese automaker aims to continue using rebadging policy
  • Wants government to reduce taxes on hybrid and petrol products
Toyota India Products
The Hilux was only recently spotted being transported on our roads

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