Toyota Urges Indian Government To Revise Hybrid Vehicle Taxes: Report
Portfolio Pulse from Shivani Kumaresan
Toyota Motor Corp (NYSE:TM) has urged the Indian government to reconsider tax rates on hybrid vehicles, which are currently taxed at 43% compared to 5% for electric vehicles (EVs). Toyota argues that hybrid vehicles are less polluting than petrol cars and should receive better policy treatment. The company is looking to increase its production of hybrids in India, but the current tax structure and the high cost of hybrid parts make production expensive. The news comes as the Indian government is pushing for more EV production with financial incentives.
October 23, 2023 | 12:37 pm
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NEUTRAL IMPACT
Toyota's push for a revision in India's hybrid vehicle tax could potentially boost the company's hybrid production and sales in the country. However, the current high tax rate and cost of hybrid parts make production expensive, which could negatively impact Toyota's profitability in the short term.
Toyota's request for a tax revision on hybrid vehicles in India indicates the company's intent to increase its hybrid production in the country. If successful, this could potentially increase Toyota's market share and sales in India's hybrid vehicle market. However, the current high tax rate and cost of hybrid parts make production expensive, which could negatively impact Toyota's profitability in the short term. Therefore, the short term impact on Toyota's stock is neutral.
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