Toyota Kirloskar Motor has discontinued the production of the Camry Hybrid sedan at its manufacturing hub in Bangalore due to Goods and Service Tax (GST). Due to the increase in the additional cess on the hybrid cars in India, the price of the sedan has increased drastically.
The Japanese automaker only produced the hybrid version of the car, as there was a fair demand for the hybrids among the buyers. However, the increase in the additional tax of 15 percentage for luxury cars, the hybrid variant of the sedan became too costly for the people. This resulted in a decreased sale numbers, by a whopping 73 percent, which forced the company to halt the production of the car in India.
The luxury sedan from Toyota offered a Hybrid technology along with a prominent exterior styling. It featured a luxurious interior with leather seats and a touchscreen infotainment system. The safety goodies included Anti-lock Braking System (ABS) with EBD, airbags, rear parking sensors, brake assist, hill assist, cruise control, etc.
The Indian-spec hybrid sedan featured a 2,494 cc, four-cylinder petrol engine and an electric motor that produced a maximum power output of 158 bhp at 5,700 revolutions per minute against a peak torque of 213 Nm at 4,500 revolutions per minute. It comes paired to a 6-speed automatic gearbox.
The implementation of the Goods and Service TAX (GST) in the country meant a standard rate of 28 percent on all vehicles. Recently, it was revised and the new one imposed an additional tax of 15 percent on all the luxury cars including hybrids and SUVs. This meant a total tax of 43 percent on hybrids as well, which automatically increases the price of the car.
The Toyota Camry Hybrid sedan was previously priced at Rs. 32 lakhs (ex-showroom, Delhi), which rose to Rs. 38 lakh (ex-showroom) due to the reformed GST. After this, the sale performance of the car decreased by 73 percent in September this year, compared to the same period in the previous year. Moreover, the company had invested Rs. 15 crores in the production hub of the car along with Rs. 24 crores for training and services. With the high taxation on the hybrids and drop in sales, the production of the car becomes too expensive for the company to carry on.