Toyota charts new course in India with its first mass market hybrid car

The Toyota brand is seen at its sales space throughout a media day for the Auto Shanghai present in Shanghai, China April 19, 2021. REUTERS/Aly Tune/File Picture/File Picture

NEW DELHI, July 1 (Reuters) – Toyota Motor Corp (7203.T) on Friday unveiled its first mass market hybrid automobile for India, a sport utility car (SUV), charting a brand new course for the Japanese automaker in one of many world’s quickest rising automobile markets.

The City Cruiser Hyryder SUV, the primary automobile to be constructed by Toyota as a part of a world alliance with Suzuki Motor Corp (7269.T), will compete with Hyundai Motor Co (005380.KS) and Kia Motor Corp (000270.KS) in a phase that accounts for a big portion of auto gross sales in India.

The brand new mannequin might be an “final sport changer” for the corporate in India’s electrified auto house, Vikram Kirloskar, vice chairman of native unit Toyota Kirloskar Motor, mentioned at a launch occasion in New Delhi.

It additionally reinforces Toyota’s resolution to take the hybrid route in growing markets like India, the place it says infrastructure just isn’t prepared for battery electrical automobiles (BEVs) and far of the electrical energy is generated utilizing coal or different fossil fuels. learn extra

Whereas inexperienced buyers have criticised the carmaker for slowness in transferring its product line-up to all-electric automobiles, Toyota stays steadfast that hybrids make extra sense in markets the place it wants to supply a wide range of selections relying on the vitality combine and native wants.

India needs carmakers to construct extra electrical fashions however the uptake for such automobiles up to now has been gradual, and solely Tata Motors (TAMO.NS) builds them domestically. India’s largest carmaker, Maruti Suzuki (MRTI.NS), has mentioned it won’t launch an all-electric car earlier than 2025.

In India, Toyota presents a robust hybrid powertrain in its premium fashions just like the Camry sedan and the Vellfire. That is the primary time it can provide the expertise in a mass phase automobile the place solely gasoline and diesel fashions are presently bought.

The brand new SUV is anticipated to be 40% to 50% extra gasoline environment friendly than a comparable gasoline-powered automobile and scale back carbon emissions by 30%, Toyota mentioned. About 90% of the automobile’s components are sourced from native suppliers – a transfer that can assist it value the automobile competitively when it goes on sale later this yr. learn extra

Toyota’s larger problem on pricing, nonetheless, will come as a result of excessive taxes that the Indian authorities levies on hybrid vehicles of between 28% and 43% versus 5% on all-electric vehicles.

The SUV, to be manufactured at a Toyota plant in southern Karnataka state, might be bought in India and different world markets together with Africa. Suzuki can even take the SUV from Toyota’s operation in southern India and promote it below its personal label. learn extra

Reporting by Aditi Shah; Enhancing by Tom Hogue and Jonathan Oatis

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