Japanese automaker Toyota Motors has restarted the production of Camry Hybrid in India. The automaker had temporarily discontinued the production of the premium sedan in the country in October last year due to low demand and increased taxes on luxury vehicles by the Indian government. The Indian government has increased the tax rate on the premium vehicles by making it 28 percent GST and 15 percent luxury cess.
Shekar Vishwanathan, Vice-Chairman, Toyota Kirloskar said, ‘‘We had to stop the production of hybrid Camry for a while because our stock had built up as the tax rate had gone up. Our intent is to bring more models at lower segments as much as possible. But first, we want the tax rate to be a little more sensible from the customer’s point of view. Once you push enough number of hybrids into the market with enough battery manufacturing taking place in India, then the volumes go up and When the volumes go up, the battery cost will come down.’’