- Toyota is lobbying the Indian government to reduce taxes on hybrid vehicles by as much as 20% to encourage their adoption.
- The company argues that hybrids are less polluting than petrol cars but currently face higher taxes in India.
- India currently imposes a 5% tax on electric vehicles (EVs) but taxes hybrids at rates as high as 43%, just below the 48% tax rate for petrol cars.
- Toyota suggests that the 5% tax differential in favor of hybrids over petrol cars is insufficient and proposes a differential of 11% for hybrids and 14% for flex-hybrids.
- The automaker also requests that India include hybrid cars in a government incentive program that offers discounts to EV buyers but excludes hybrid vehicle purchasers.
- Toyota is expanding its production capacity in India to meet the growing demand for hybrids in the country.