Toyota Kirloskar sales down 9.29% in May, company says GST delayed purchases
Toyota Kirloskar expects the government to review the proposed GST structure for electric, hybrid vehicles to achieve cleaner mobility solutions.autos Updated: Jun 01, 2017 17:15 IST
Toyota Kirloskar Motor (TKM) on Thursday reported 9.29% decline in total sales at 12,339 units in May.
The company had sold a total of 13,604 units in the same month last year, TKM said in a statement.
Domestic sales were down 13.48% to 10,914 units as against 12,614 units in May last year, it added.
TKM exported 1,425 units of the Etios series in May 2017 as compared to 990 units in the same month last year, a growth of 43.94%.
Commenting on the performance, Toyota Kirloskar Motor director and senior vice-president - sales & marketing N Raja said ambiguity surrounding the proposed GST structure made customers postpone vehicle purchasing plans.
“We expect this impact to magnify in June 2017 until the customers have a clear understanding of the final pricing post the GST rollout,” he added.
Raja further said the company expected the government to review the proposed tax structure, under GST regime, for greener vehicles such as electric, hybrid to achieve cleaner mobility solutions.
“We do hope the government will continue to extend the prevailing tax benefits for greener technologies which are purely based on the fuel efficiency and eco-friendliness,” he added.
Under the proposed GST rates, hybrid vehicles are to be taxed at 28% with 15% cess, same as that of other large luxury cars and SUVs. Under the GST, the tax incidence on hybrid vehicles will go up to 43% from the current level of effective tax rate of 30.3%.
First Published: Jun 01, 2017 16:57 IST