Japanese carmaker Toyota on Thursday pushed for a lower excise duty for vehicles with pure hybrid mechanisms while seeking a clear distinction between fully hybrid and mild hybrid technologies. The company, which operates in India through a joint venture with the Kirloskar group, plans to bring in hybrids and latest technology vehicles in the country as part of its long-term strategy.
“The Government recognises it very clearly that a strong hybrid is superior to a mild hybrid, that is recognised and we respect government's views on that and it's a consensus view even within the industry,” Toyota Kirloskar Motors (TKM) Vice-Chairman Shekar Vishwanathan told PTI. “There is no dispute on that, but where the recognition is not coming from the government is from the tax side. The excise duty structure that is currently prevalent puts both mild and strong hybrid vehicles on the same plane. So, I think it definitely needs some correction because the strong hybrid is much more fuel efficient,” he added.
In the current tax structure, all types of hybrid vehicles mild, pure, small and big attract an excise duty of 12.5 per cent. A hybrid vehicle uses two or more separate systems to propel the vehicle while a mild hybrid electric motor cannot actually propel the vehicle on its own.