Toyota Kirloskar Motors (TKM), the Indian subsidiary of Japanese auto major Toyota that created ripples in the Indian auto market with its Qualis in 2000 and multi-purpose vehicle Innova in 2005, is all set to launch its hybrid Prius in India.
Toyota has decided to launch the vehicle in India in 2010, when the company is expected to start its operations in the upcoming second plant for small cars near Bangalore, sources close to the development said. The world?s first mass-produced gasoline-electric hybrid passenger car Prius will be imported as completely built units (CBUs) from Japan for India, a Toyota official said requesting anonymity. But again, the launch will depend on the market condition and on the tax concession from the government, the official added. Talking to FE on the sidelines of 18th International Engineering and Technology Fair in Bangalore, where a charming green colour right-hand drive Prius has been showcased, TKM?s managing director Hiroshi Nakagawa, declining to provide a time-frame for Prius? launch in India, said, ?We are now studying the market condition, taxation and customer demand for hybrid vehicle.?
He said, ?The tax support (in India) is not enough compared to other countries like Japan, the US, Thailand and Australia – every country is very much keen to enhance eco-friendly vehicles. They have lot of tax support. I hope India will also (consider tax supports).? Asked is TKM in talks with the Indian government for tax exemption for Hybrids, he said, ?Yes?. Toyota, which has been giving sleepless nights to the big-three car makers in the US including General Motors and Ford through its hybrid Prius, would like to pitch the car in India with much affordable price compared to the Civic Hybrid, the first hybrid car in India from Honda?s staple. Although it was not officially announced, the company had thoughts of introducing the Prius in 2009. But infrastructure issues, steep duty structure and pricing pressure, particularly when its arch rival Honda slashed the price of its Civic Hybrid by Rs 8.14 lakh to 13.36 lakh as a limited time offer in November last, have forced the company to put breaks on its plans of launching Prius. Now the company believes that it could attract high-end customers by showcasing the Prius success at the global market. The official announcement on Prius is expected from the company by the second quarter of 2010, sources added. Toyota and Honda are leading the world hybrid car market, where the Prius that was launched in 1997 is the market leader. Hybrid vehicles are much more fuel-efficient than vehicles which run on conventional fuel petrol/diesel.
