Diesel ban effect: Toyota sees spurt in hybrid car sales

Toyota has seen some positive spin on the sales front after the apex court ban on sale of high-powered diesel cars in the National Capital Region.

The Japanese auto giant has seen a spurt in sales of its Camry hybrid in India after the Supreme Court ban. The move indicates growing acceptance of such cars among the customers, despite an expensive price tag the environment-friendly models carry.

“After the Delhi ban, we have more than doubled the sales of Camry Hybrid to over 100 units a month from about 40 units last year,” B Padmanabha, Vice-President – Customer Service Group, Toyota Kirloskar Motor, Indian arm of Toyota, told BusinessLine .

Camry is clocking volumes of about 125 units a month. Of which, 92 per cent comes from hybrid variant.

Camry hybrid continues to grow and the success of Camry hybrid signals the interest among the car buyers to adopt alternative fuel technology not only for environment related benefits, but also to conserve fuel, said the company.

“The trend is changing in India. But unfortunately, it is changing forcibly. Awareness about hybrid cars or interest in hybrid cars has just started in India, but big movement is yet to happen,” he added.

Corporate executives make up the major chunk of its Camry Hybrid customers in India.

“People who buy Camry Hybrid are global citizens with expectation of luxury and technology along with awareness about such cars. Camry fits into that very well,” Padmanabha said.

The company said it was working with SIAM and the government to promote hybrid technology in India, while it has also been educating people about the benefits of hybrid models at various forums.

“There should be a situation where buying hybrid models would be a natural choice rather than a forced decision. Though hybrid cars are expensive now, volumes along with government sops for localisation will definitely drive costs down,” he added.

Asked about Toyota’s plans to roll out hybrid models in lower or mid-segment of Indian car market, he said that a right eco system would definitely pave the way to bring more hybrid models into India.

“Globally, we have decided to sell more hybrid cars. We have a strong line-up. Once the eco system evolves, we will bring in more models. We believe that hybrid is the future,” he added.

Toyota has been seeking a reduction in import duty to encourage manufacturers to import hybrid cars in India through the CBU (completely built unit) route.

This will help attract more people to consider hybrid cars as a purchase option.

Among other government-related measures for promoting hybrid vehicles, the Delhi government has announced a VAT reduction for these models.

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