As part of that strategy, Toyota has appealed the Indian government for reduction in GST rate for hybrid cars
Toyota proposed 37% tax on hybrid cars and 34% on flex-hybrid models
With this, Toyota has proposed an 11% tax differential over petrol cars for hybrids and 14% difference for flex-hybrids
Toyota has stated that hybrid cars are far less polluting compared to petrol models but do not get commensurate policy treatment
India currently taxes hybrid cars at 43%, slightly lower than the 48% tax imposed on petrol cars, while EVs are slapped with 5% tax
The Japanese carmaker believes the proposed reduction of taxes would bring more relief for the consumers who seek to buy hybrid cars
Toyota also claimed that current 5% differential between petrol-only and hybrid cars is insufficient and should be widened
The automaker currently sells four hybrid cars in India: Camry, Innova Hycross, Urban Cross Hyryder and Vellfire
To grab a larger chunk of the Indian hybrid car market, Toyota is aiming to boost production
Toyota has also proposed a government incentive programme that offers discounts to hybrid car buyers, similar to electric vehicles