NEW DELHI: Japanese auto major Toyota is confident that demand for hybrid vehicles will remain strong in India going forward owing to its practicality and consumer acceptance.
“Two years back we introduced the strong hybrid vehicle and the customers have accepted it. There are still convictions that in terms of practicality, hybrids are going to stay here. We believe that demand for strong hybrids will remain strong in 2025 as well,” Toyota Kirloskar Motor & Lexus India, Deputy Managing Director - Sales-Service-Used Car, Tadashi Asazuma told this publication.
As per the last data available, sales of hybrid cars, including both strong and plug-in versions, increased by 27% from January to July 2024, reaching 51,897 units compared to 40,811 units during the same period last year. Toyota has multiple hybrid vehicles in India, ranging from Hyryder and Hycross to Camry and Vellfire.
The company said that they are operating their Karnataka plant in three shifts (or 24 hours) to meet demand and their expansion plan in Karnataka and Maharashtra is on track. While Toyota is confident about its growth prospects in India, Asazuma said that the current concern for them is the rupee depreciation. He added that if they experience a rise in input cost, they will have to pass it to end consumers.
“While we are producing in India, there are some cars which we bring from Japan. This is where we are facing the impact,” stated Asazuma as the rupee experienced a consistent depreciation in recent months.
Asazuma also informed that TKM would be coming up with a new mobility service company for their used car division. Toyota, at present, has three outlets for used cars which they expect to double this year.
Toyota Kirloskar Motor Executive Vice President & Country Head Vikram Gulati said that the company has a multi-pathway corridor ranging from battery electric to hydrogen, plug-in hybrid and flex fuels to tackle the problem of carbon emission. He also informed that the company is “thinking” about introducing a full-electric vehicle in India. “However, as we have repeatedly said as a solution (EV) is not the only answer. We have many answers,” said Gulati.