Toyota Motor Corporation is now planning to launch the hybrid version of its flagship sedan, Etios for the emerging markets, which may includes India also. Toyota’s Indian subsidiary Toyota Kirloskar Motor is currently conducting a survey to check the feasibility of assembling hybrid models in India. The company is already selling the Prius Hybrid in India and is also in mood to bring Camry hybrid to extend its hybrid portfolio.
Toyota sold over 1.2 million hybrids in 2012 which currently holds for about 14 percent of the total car sales. However, the company currently have negligible share in the emerging markets like India. So, Toyota is currently looking for a new approach to tackle the price sensitive markets. Company currently imports Prius that subjects it to about 100 percent excise duty which pushes the car price to almost Rs.28 lakhs. As a result of the high price company has been able to sell only 170 units since its launch back in January 2010.
Commenting about the company’s development for the emerging markets, Chief engineer, Kouji Toyoshima said that they need to consider the hybrid version of the Etios for a car for the emerging market. The first priority will be to reduce the vehicle cost and improve the efficiency so, that the people from the emerging market could choose it as a better option for the future.
Hybrid vehicles are quite different from the electric vehicles, they harness energy from two or more sources, like an engine and electric motor in Toyota Prius but they don’t need any external charging thus they can be used as a normal vehicle. The hybrid vehicle usually costs about 30-40 percent more than the petrol or diesel counterparts but is about 50-100 percent more efficient than them. Through the NEMMP (National Electric Mobility Mission Plan 2020) government has decided to spend about Rs. 23,000 crores. The half of it will be spend directly by the government this will surely create a hike in the demand of the hybrid vehicles in the country.
According to the report from Economics Times the government will most probably be offering minimum of Rs. 50,000 to Rs. 1.5 Lakh as subsidy on each of the hybrid car as a part of scheme. It is also possible that Toyota will start assembling Prius in India to cut down its price. So, if both of the foresaid things take shape, Toyota hybrid can provide a good alternative for the diesel vehicles.
DMD and COO of Toyota Kirloskar, Sandeep Singh said that company is in talks with the Indian government over the subsidies that are needed to promote Hybrid vehicles in Indian market. He further said that the company is conducting the survey and feasibility test to ensure that if it is possible and profitable to assemble hybrid vehicles in India itself (currently Hybrid vehicles are being imported as CBU or completely built units). But Toyota is also expecting some government support at the same time to ensure that their hybrid vehicles are priced at the lowest possible cost to encourage more buyers to migrate towards hybrid technology. He also said that this will allow Toyota to layout their targets and provide a complete roadmap for the significant integration of the environmental friendly hybrid technology in the Indian market.
Although with the NEMMP 2020, Indian government is planning to bring down over 1.5 million electric or hybrid vehicles on the road, which is about 17.8 to 18.9 percent of the total four wheelers on Indian roads.